How to Develop, Use and Defend Employee Performance Appraisals
| Publication year | 1987 |
| Pages | 637 |
1987, April, Pg. 637. How to Develop, Use and Defend Employee Performance Appraisals
A performance appraisal system is significant to both management and employees for practical reasons related to job performance, career development, job retention, benefits and litigation which may arise in these matters. Management generally recognizes the value, if not the obligation, of accurately informing employees periodically as to their performance, accomplishments and shortcomings. Management's failure to notify an employee of unsatisfactory performance and to afford the employee an opportunity to improve before taking adverse action often will undermine the employer's position in subsequent litigation.(fn1)
Performance appraisal systems should be designed to measure performance and identify potential. Employees have a need and expectation to be informed of their performance. However, it is inadequate to characterize an emloyee's performance as "good", "average" or "bad" without providing specific examples of actual performance. Moreover, it is advantageous for management to identify to each employee those skills which would benefit from additional training as well as a performance that represents exceptional accomplishment and demonstrates the capacity to master greater responsibility.
This article discusses employee performance appraisal systems and focuses on anticipating issues that may arise in employment-related litigation.
A performance appraisal system provides management and employees with an objective, systematic basis for making determinations concerning promotions, demotions, reassignments, adverse actions, suspensions, terminations, layoffs and recall, bonuses, probation, training and elevation to managerial ranks.(fn2) An informed, defensible judgment about an employee's performance and potential can be made only when the relevant performance factors have been considered.(fn3) Unsupported impressions of employee performance not only are irrelevant in evaluating an employee's work, but such unfounded opinions concerning performance tend to impugn the integrity of any personnel action taken by management concerning such an employee.(fn4)
An inflated appraisal that bears little resemblance to actual performance can be detrimental to an employer who finds it necessary to remove an employee for poor performance that was not otherwise reflected in the appraisal. This is often the situation that confronts a supervisor who has just assumed responsibility for an overrated but underachieving employee. Taking adverse action against an overrated employee exposes the supervisor to charges of discrimination, harassment, reprisal or other wrongful action based on improper motives.(fn5) Regardless of the merit of such charges, management may be left with the unpleasant task of repudiating glowing performance appraisals that have misrepresented the employee's actual performance. This will not enhance an employer's credibility before the trier of fact in an administrative or judicial hearing. Thus, a credible performance appraisal system also serves the valuable purpose of providing objective evidence in litigation concerning discrimination, wrongful discharge, pay differences and even unemployment compensation.(fn6)
An employer's performance appraisal system should remain faithful to its intended purposes and objectively document the actual performance of employees; otherwise, it would be prudent to have no...
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