1. Performance management is the process of assessing employee performance on an annual basis.
2. Measuring performance and providing feedback does improve employee performance.
3. During the performance appraisal process, a focus on clear goals that encourage an employee to stretch and improve help provide clear direction for employees to improve performance.
4. Establishing and accomplishing important goals helps employees see areas where they are clearly contributing to the organization
5. All performance appraisal systems should differentiate high and low performers.
6. Parity-based performance appraisal systems usually require a forced distribution, which involves placing a certain percentage of employees in each rating category.
7. Parity based systems encourage all employees to be high performers.
8. Parity-based performance management systems are usually preferred by the top performers in an organization.
9. Merit-based performance systems are appropriate for organizations pursuing a Free Agent or Committed Expert HR strategy.
10. Under a parity-based performance appraisal system, evaluating most employees as high performers encourages the development of long-term employee relationships and a strong sense of loyalty.