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ACCA Applied Knowledge · Business and Technology · Review and appraisal of individual performance

A manager uses the results of annual appraisals to decide which employees will receive performance-related bonuses. Which purpose of appraisal is being served?

The purpose served is reward review. The appraisal results determine who receives performance-related bonuses, so pay is linked directly to assessed performance. This differs from identifying training needs, which looks at skill gaps, or succession planning, which looks at preparing staff for future roles.

  1. AReward reviewCorrect
  2. BIdentifying training needs
  3. CSuccession planning only

Explanation

Using appraisal outcomes to decide bonuses links performance to pay, which is the reward review purpose. Identifying training needs concerns skill gaps, not pay. Succession planning concerns future promotion, not bonus decisions.

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