Sales & Marketing Management

The year-end review

At the end of the fiscal year, review the results in the same way as at the
interim review and the actual performance rating established.

Again, some counselling or help from the manager may be indicated.

A brief period should occur between a final PPO review and the setting of next
year's PPO to allow all parties to digest the results and consider the next year's
forecasting.

At the discretion of the business owner or manager, partial points may be
awarded for a particular PPO on a pro rata basis or the entire PPO may have to
be achieved.

The performance rating of the PPO is then used directly in:

Determining the bonus earned, if applicable

Determining the appropriate amount of salary increase on the

anniversary hiring date of the employee

For example

If, in the PPO example, 80% of the new business goals, item 5 were

achieved, the manager may elect to award 8 points.

If this is to be completed with some PPO, the employee should

understand this in advance.

It is recommended that this should not be brought about unless a

minimum standard of achievement is in effect.

An acceptable standard, before the pro rata formula would apply, would

be 60% or more of the goal achieved.