Legal and Ethical Issues in Performance Appraisals

Performance appraisals contain a number of nonperformance factors that are correlated with or bias employee ratings. Personality, occupational factors, hierarchical rank, purpose of the appraisal, age, race, and sex are all variables affecting the process. It is ironic that performance information d...

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Bibliographic Details
Published in:Harvard business review 1980-11, Vol.58 (6), p.186
Main Author: Winstanley, N B
Format: Magazinearticle
Language:English
Subjects:
Due process of law
Implications
Legal
Litigation
Performance appraisal
Online Access:Get full text
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Summary:Performance appraisals contain a number of nonperformance factors that are correlated with or bias employee ratings. Personality, occupational factors, hierarchical rank, purpose of the appraisal, age, race, and sex are all variables affecting the process. It is ironic that performance information designed to be fair and helpful is often inaccurate and punishing. Such practices become an ethical issue for business. Equally serious is the potential legal exposure. Biased appraisals become illegal when their application results in adverse and disparate effects on minorities, women, or older employees. In view of this, it seems prudent to consider improvements in the way disagreements are aired and administered. It would be helpful to have an impartial third party to review grievances and arbitrate them. It is likely that government will extend itself more and more into the workplace. Unless improvements are made in the review system, it is reasonable to predict a further increase in court cases which will eventually lead to more legislative action. There is a need for manager training and employee participation in all phases of the evaluation process.
ISSN:0017-8012