1. The Australian Public Service. -- 2. Performance criteria and indicators. -- 3. Performance feedback. -- 4. Performance Ratings. -- 5. Moderation of initial performance rating scores and appeal processes. -- 6. The linkage of appraisal and pay. Conclusion

This paper explores employee responses to the performance-based pay schemes introduced into the Australian Public service in 1998 and 1999. Many federal public sector employees were aware of the subjectivity and enhanced managerial discretion inherent in these schemes. In response, employees sought to ensure that performance indicators were specific and job-related. Employees were also aware of the importance of seeking regular feedback during the appraisal cycle. Nevertheless, the prime challenge for Australian public sector employees and their unions involved the development of an approach to performance management that would ameliorate the individualistic and competitive nature of individualised merit pay compensation processes. In particular, this involved the pursuit of increased procedural justice in the formulation and implementation of such schemes.