ACCA Applied Knowledge · Business and Technology · Review and appraisal of individual performance
A manager uses the annual appraisal to decide which employees should receive a performance-related bonus. Which of the following best describes this purpose of appraisal?
This is a reward review. Appraisal outcomes are used to justify pay rises or bonuses by comparing performance with agreed standards. Training needs analysis focuses on skill gaps, and disciplinary processes address misconduct, so neither describes using appraisal to allocate a performance-related bonus.
- AReward reviewCorrect
- BTraining needs analysis
- CDisciplinary process
- DSuccession planning
Explanation
Using appraisal results to decide pay increases or bonuses is the reward review purpose of appraisal. Training needs analysis concerns skill gaps, discipline concerns misconduct or poor performance procedures, and succession planning concerns future leaders.
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