Here is all information I had

1. "Henderson Printing" in the Appendix currently has no formal performance appraisal system. The CEO, Georgette Henderson, thanks that a performance appraisal system might be useful, and she has hired you to assess the company and recommend whether to implement one. She also wants to know whether she should link pay to the appraisals. She expects your report to include the pros and cons of each idea, along with a detailed justification for your recommendations

2. CEO Herderson has decided to go a head with a performance appraisal system, and she has decided to link it to merit pay. Impressed with your earlier work for the company (see Question 1), she has hired you to design the performance appraisal system and a merit pay system that will be linked to it. She expects your report to be sufficiently comprehensive that it can serve as the blueprint for implementing these systems.