A software program assists in establishing goals and objectives and creating appraisals based on those goals and objectives. The goals for an organization are determined, and individual objectives based on the goals are defined. The software program assigns weights and compensation adjustment guidelines to the individual objectives, and obtains a plurality of appraisals based on the individual objectives. The scores from the appraisals are combined with the compensation adjustment guidelines, and a suggested compensation adjustment is automatically determined. Any of the individual objectives may also have a corresponding qualification component, and an individuals qualifications may be automatically revised based on the appraisal grades and the corresponding qualification component.