This is Chapter 9 of ''TheLeadersHandbook'' [ISBN 0070580286] by PeterScholtes.

A lot of discussion on PerformanceAppraisal''''''s, bonuses, and rewards occurred on the Extreme Programming yahoo mailing list. Lot of concerns and questions raised there can be found in this chapter.

Scholtes explains why Performance Appraisals do not contribute to a company, and suggests ways to migrate to a system without Performance Appraisal.

Related readings: 
	* "Don't Redesign Your Company's Performance Appraisal System, Scrap It": http://home.att.net/~nickols/scrap_it.htm
	* ''Punished By Rewards'', by Alfie Kohn [ISBN 0618001816]