Step Progression / Performance Appraisals

We have our employees set up with step progression, with units as days. We would like to know if an employee whose annual review is unsatisfactory, and that employee is set with step progression to next pay rate, can we stop the system from advancing the employee to the next step? If the same employee gets a good review next time, can we set the system to move him to the step after the previous year step. I have attached an example: the employee is at step 2, if he gets a bad review we do not want the system