1. Legal Implications
Employers must prepare for more discrimination lawsuits and jury trials related to performance appraisals
Unlikely that any appraisal system will be immune to legal challenge
© 2008 by Prentice Hall

2. Courts Normally Require
Either absence of adverse impact on members of protected classes or validation of process.
System that prevents one manager from directing or controlling a subordinate’s career.
Appraisal should be reviewed and approved by someone or some group in organization.
Rater, or raters, must have personal knowledge of employee’s job performance.
Must use predetermined criteria that limits manager’s discretion.
© 2008 by Prentice Hall

3. Appraisal Interview Achilles’ heel of entire evaluation process
Scheduling interview
Interview structure
Use of praise and criticism
Employees’ role
Use of software
Concluding interview
© 2008 by Prentice Hall

4. Interview Structure Discuss employee’s performance
Assist employee in setting goals and personal development plans for next appraisal period
Suggesting means for achieving established goals, including support from manager and firm
© 2008 by Prentice Hall

5. Conducting Separate Interviews
Merit in conducting separate interviews for discussing (1) employee performance and development and (2) pay
When topic of pay emerges in interview, it tends to dominate conversation with performance improvement taking a back seat
© 2008 by Prentice Hall

6. Use of Praise and Criticism
Praise is appropriate when warranted
Criticism, even if warranted, is especially difficult to give
“Constructive” criticism is often not perceived that way
© 2008 by Prentice Hall

7. Employees’ Role
Should go through diary or files and make notes of every project worked on, regardless of whether they were successful or not
Information should be on appraising manager’s desk well before review
© 2008 by Prentice Hall

8. Concluding the Interview
Ideally, employees will leave interview with positive feelings about management, company, job, and themselves
Cannot change past behavior, future performance is another matter
Should end with specific and mutually agreed upon plans for employee’s development
© 2008 by Prentice Hall

9. A Global Perspective: Two Cultures’ View of Performance Appraisal
Special problems when translated into different cultural environments
Chinese companies tend to focus appraisals on different criteria
Place great emphasis upon moral characteristics
May tolerate less than optimal performance because maintaining family control is so important
© 2008 by Prentice Hall

10. © 2008 by Prentice Hall