Do you think setting the Annual Bonus as a fixed is better than Performance Appraisal base ?

Dear Mr. Ageel

As per my opinion It depend on condition of business to go with fix or performance base bonus lets take a scenario

First Scenario Company just started to gaining profit in the business but not constant rate, at that time fixed bonus will preferred because 

It will not affect HR budget to much and it is easy to convince CFO for small amount.

Employee will motivated that company is bother about them even in bad profit situation 

Second scenario - Company is in good condition and getting god profit at that time Performance basis preferred because

Is help to ignite the growth of company by motivation best performer and encourage bad performer 

So my fried it depend on the lots of the factor to decide. if you can explain me the scenario so that I can help you

Anurag