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    Managers and human resource professionals often struggle with the linking of performance management and performance appraisal to performance pay or merit pay. It makes intuitive sense to reward the most valuable employees, but the practice is not a simple one, since it is common to create undesired and unanticipated side effects regardless of how you go about the task of using performance appraisals to determine raises. Here's some guidance, adapted from Performance Management - A Briefcase Book, by Robert Bacal
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    performance appraisal to performance pay or merit pay. It makes intuitive sense to reward the most valuable employees, but the practice is not a simple one, since it is common to create undesired and unanticipated side effects regardless of how you go about the task of using performance appraisals to determine raises. Here's some guidance, adapted from Performance Management - A Briefcase Book, by Robert Bacal
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    cipated side effects regardless of how you go about the task of using performance appraisals to determine raises. Here's some guidance, adapted from Performance Management - A Briefcase Book, by Robert Bacal
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    e raises. Here's some guidance, adapted from Performance Management - A Briefcase Book, by Robert Bacal (McGraw-Hill)

    First, there is no "best" way to link pay or salary to employee performance, and no best way to implement merit pay. There is only a "best" way in your situation or company, and what works in one place may not be best in another. So, you need to decide based on what you want to create, your circumstances, and the culture of your company. However, here's an approach.

    Acknowledge that no

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