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Unformatted text preview: ation Legal Negligence
Duty to conduct appraisal with care Duty to notify employee of performance problems so Duty they can be corrected they Defamation
Appraisal contained false assertions of fact Assertion was published to some third party The published falsehood injured the employee’s The reputation reputation Legal Risks in Performance Evaluation Legal Misrepresentation
Employers are not accountable for failing to disclose Employers negative information about a former employee negative Affirmatively misrepresenting that a former Affirmatively employee’s performance was favorable may be a problem if the new employer relies on the representation and is harmed as a result of the poor performance of the employee performance T EEO & Performance Evaluation EEO What is the significance of the 1973 case of Brito What v. Zia Company? v.
What was at issue in the case? What did the court determine? EEO and Performance Evaluation EEO
The courts stress six issues in setting up a The performance appraisal system: performance Instructions on how to complete the appraisal Instructions should be specific and written. should Performance dimensions, criteria, and scale Performance levels should be written, objective, and clear. levels Job descriptions should be adequately Job developed and documented. developed 1. 2. 3. EEO and Performance Evaluation
(continued) (continued) Supervisors should be required to provide Supervisors feedback about appraisal results to the employees affected. employees 2. Review of any performance rating by a higher Review level supervisor should be part of the system. level 3. Consistent treatment across raters, regardless of Consistent race, color, religion, sex, and national origin should be built into the system. should
1. Additional Guidance from Cases Additional Appraisal Criteria
Should be objective rather than subjective Should be job-related or based on job analysis Should be based on behaviors rather than traits Should be within the control of the employee Should relate to specific functions, not global Should assessments assessments Should be communicated to the employee Requirements to Link Pay to Performance Requirements
Define performance, in terms of
Behaviors Competencies Traits Or overall performance results Decide how much of a merit increase is given for Decide different levels of performance different Describe how the actual merit increase granted Describe relates to performance and position in salary range relates NOTE: Avoid comparisons to other employees
» Why? Performance-based Merit Guidelines Performance-based
To determine if this would be the right grid you need to make assumptions about the distribution of ratings; this is usually done by extrapolating historical ratings. Rating Distribution 10% 20% 60% 5% 5% Given the performance rating distribution above, what would be the average increase that would need to be budgeted for this merit grid? Promotional Increases as a Pay-forPromotional Performance Tool Promotion should be accompanied by a salary Promotion increase - 8 to 12% increase Will depend on the size of the average merit increases Will and where the job falls in the hierarchy; higher jobs may get bigger increases since the difference in jobs is greater is Characteristics of promotional pay increases
Size of increment is approximately double a normal Size merit increase merit Performance Evaluation Mindset Performance Companies need to determine the mindset they Companies want managers to have regarding performance appraisal appraisal
Judgmental/Critical Developmental Legal Justification of pay decisions Balanced focus Performance Evaluation Mindset Performance Old Mindset Judgmental Defensive Once a year event Parent/Child New Mindset Focus on improving performance/Coaching Participatory/Self Assessment Multi-source input Dialogue Look at the person and the system/barriers...
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- Spring '09