* Performance appraisal is necessary to measure the performance of the employees and the organization to check the progress towards the desired goals and aims.
* Performance appraisals of Employees are necessary to understand each employee’s abilities, competencies and relative merit and worth for the organization.
* Performance appraisal rates the employees in terms of their performance.
* Performance appraisal helps to rate the performance of the employees and evaluate their contribution towards the organizational goals.
* If the process of performance appraisals is formal and properly structured, it helps the employees to clearly understand their roles and responsibilities and give direction to the individual’s performance.
* It helps to align the individual performances with the organizational goals and also review their performance.
* And it takes into account the past performance of the employees and focuses on the improvement of the future performance of the employees.
* Organizations have to bridge the gap between the industry standards and their salary packages.
* They cannot provide compensation packages that are either less than the industry standards or are very higher then the market rates.
* For the purpose they undertake the salary survey.
* The Salary survey is the research done to analyze the industry standards to set up the compensation strategy for the organization.
* And the analysis is done on the basis of certain factors defined in the objectives of the research.
Objectives of Salary Survey:
• To gather information regarding the industry standards
• To know more about the market rate i.e. compensation offered by the competitors
• To design a fair compensation system
• To design and implement most competitive reward strategies
• To benchmark the compensation strategies.