Abolishing annual performance appraisals promotes self worth and pride in employees because it creates improved ways for individuals to receive increases in pay.
Instead of basing the pay increase on achieved results without taking into account the possible barriers outside the control of the employees or overseeing their work, the increase is solely based on how much it would cost to hire a new employee with the same skills to replace the position.
Handling pay increases in this manner prevents unneeded competition between workers and promotes teamwork since all will reap the benefit of the increase rather than a few favorites.
In addition, by eliminating the annual rating or merit system, tension is relieved creating room for pride in workmanship, which contributes to further improvements
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