Understand any company about their appraisal system based on performance & compensation.

performance appraisal is the process of obtaining, analyzing and recording information about the relative worth of an employee. The focus of the performance appraisal is measuring and improving the actual performance of the employee and also the future potential of the employee. Its aim is to measure what an employee does. Here I have chosen a well-known company called NOKIA

NOKIA has incorporated performance appraisal in its compensation plans for its employees. The company has adopted the philosophy of pay-for-performance Nokia has online performance appraisal which helps organization quickly create high-value performance appraisal for all employees. Nokia has neglected having an annual process of appraisal process to involvement of plenty of paperwork, excessive control of the appraisal process and various rating errors that creep in while appraising an employee.

Advantages User friendly. Kind of a draft plan in nature. It empowered every one to set his objective. quickly create high-value performance appraisals It increases the confidence of Employee. Unbiased opinion. Cost is low.

Dis-advantages Structural reduction. Nothing confidential. Possibility of damage. Influence of Political, structural and other factors