There is nothing kind of law which supports an organization to comment on the performance of its members, just as no law requires a company to produce annual budgets or provide good customer service If a company decided to have a performance appraisal system,
The system must follow the all necessary laws. In the eyes of the law, a performance appraisal is a kind of employment test for the employee. It is thus compiled in such a manner that similar to that of other standards of the employment process
The legal terms and requirements for performance appraisal systems are similar to any other selection based tests.
But there are several other kinds of ethical issues related to performance appraisal system which majorly or majorly can impact on organization directly or indirectly in the short or long run.
The performance Appraisals must not be used to discriminate employees on the premise of race, religion, age, sex, inability, conjugal status, pregnancy, or sexual inclination.
Appraisal results should be treated as private and confidential information. Record storage should be secure and controlled.
An employee should have the opportunity to comment on their appraisal result, to express their agreement or otherwise, and to appeal the result or at least request a review by up line supervisors
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