Final answer:
Performance-based rewards should be relevant, aligning with what employees can control; they should also be achievable and time-bound. A 360-degree feedback appraisal involves multiple evaluators and encourages proactive engagement from employees. Rewards should also reflect the value of the employee's contribution to the organization.
Step-by-step explanation:
Performance-based rewards should be relevant, which means they should align with performance within an employee's control. This is critical for ensuring that the incentives encourage behaviors and results that individual employees can directly influence through their actions and skills. In addition to being relevant, performance-based rewards should also be achievable and time-bound, providing realistic targets that employees can work towards within a specific timeframe.
A common method for appraising performance is the 360-degree feedback appraisal, where not only supervisors but also customers, direct reports, peers, and the employees themselves contribute to the evaluation. By engaging with the performance evaluation process, understanding company goals, and discussing personal achievements, an employee can proactively contribute to their professional development and, in turn, to the company's success.
It's also important to recognize the value of contribution when administering performance-based rewards. This refers to rewarding employees on the basis of the value their work adds to the social product, thereby encouraging a direct correlation between efforts and rewards.