You work for a company that conducts performance appraisals once a year. The potential merit pay increase is dependent upon the rating the employee receives. Most employees have been moderately satisfied with the merit pay increases they have received. However, there has been some employee dissatisfaction with once a year appraisals not being enough.

Through your studies, you now know how a properly implemented performance management system can have positive outcomes for an organization. So I want you to think about how you would help this company move from the thinking that a performance appraisal is performance management and therefore sufficient.

1. Identify and describe two benefits and one issue of transitioning from a performance appraisal to a performance management system. With each benefit and issue also discuss which of the four parities would be involved/impacted.