Good remuneration has been found over the years as one of the policies that the organization can adopt to increase the performance of its workers and thus increase the productivity of organizations. In addition, with the current global economic trend, most employers have realized that for their organizations to compete favourably, the performance of their employees contributes greatly to determining the success of the organization. On the other hand, the performance of employees in any organization is vital not only for the growth of the organization, but also for the growth of the individual employee. An organization must know who its outstanding workers are, those who need additional training and those who do not contribute to the efficiency and well-being of the company or organization. In addition, on-the-job performance can be assessed at all levels of employment, such as: personal decisions related to promotion, job rotation, job enrichment, etc. And, to a certain extent, such evaluation is based on objective and systematic criteria, on the ability of the person to perform at work. Therefore, the overall purpose of performance assessment is to provide an accurate measure of how well a person is performing the task or work assigned to him or her. And based on this information, decisions will be made affecting the future of the individual employee.
Therefore, careful evaluation of an employee's performance may reveal weaknesses and deficiencies in a specific job skill, knowledge, or areas where motivation is lacking. Once identified, these shortcomings may be addressed through additional training or the provision of the necessary rewards.
Each organization must maintain a balance between internal sources of staff promotion and external sources through recruitment. Promotion should therefore be based on a coherent, fair and clear policy. The National Institute of Personnel Management (NIPM) has suggested a promotion policy in the following lines: Elaboration of an organization chart to clarify the whole promotion ladder. Where there is a job analysis and a planned salary policy, such a letter is fairly easy to prepare. Make the promotion system clear to all stakeholders who can initiate and handle promotional cases. Although departmental directors may initiate promotion, final approval should be left to top management, after the personnel department has been asked to verify if its impact is likely to result from the proposed promotion. All promotions must be during a trial period to determine whether the promoted person is able to handle the job or not.