Your boss suspects people aren t being trained properly, and asks you to improve the current training program to make it more effective. You ve noticed, in discussions with your fellow managers, that the performance appraisal system used by your company is ineffective. In particular, the evaluations are used to make decisions on raises and promotions, but employees are always complaining that these things are all based on politics. Your informal discussions reveal to you that there is great inconsistency in how the managers use the form, what they look for in evaluating performance, and how they rate employees. Answer should reflect the fact that employees are not systematically fooled, and the current system probably is inconsistent, leading to the perception that what s being evaluated is not performance, but rather like-ability .
Nothing gets employees more up in arms than pay issues.
Explain three reasons why this is so. The system establishes the upper and lower boundaries of production capability. Expected, or average, performance typically has much wider variation than most managers realize. Performance appraisal systems attempt to create or force artificial distinctions on employees with regard to variations in performance. These distinctions are believed to be the result of greater or less effort, when they often are just random fluctuations in performance.