Legal & Ethical Issues in

First, there is no legal requirement that a company must have a performance appraisal system. No law compels an organization to review the performance of its members, just as no law requires a company to produce annual budgets or provide good customer service If a company does choose to have a performance appraisal system,

It must be sure that the system complies with the laws. In the eyes of the law a performance appraisal is an employment test. It is thus scrutinized in a manner similar to that of other aspects of the employment process: initial recruitment, selection and hiring, promotion, compensation, and termination. 

As a result, the legal requirements for performance appraisal systems are similar to those for other selection tests.

But there are many other ethical issues related to performance appraisal system which may impact on organization directly or indirectly in short or long run.

 

  1. The performance Appraisals should not be used to discriminate against employees on the basis of race, religion, age, gender, disability, marital status, pregnancy, or sexual preference.

 

  1. All appraisal records should be kept and maintained by the organization, especially in case of poor performance. The records will be help to handle any legal issues in respect of poor performer. Likewise, employee believes they have been dealt with unfairly, they may have rights to instigate legal action years later, in such case, the records retention would help to protect employer

 

  1. The performance appraisal system should not mealy used for promotion, transfer, increment, demotion etc rather this tool should be use to optimize the performance of an employee and plan his career and learning prospects for future performance and growth.

 

  1. Performance appraisal results should be fair, accurate and supported by evidence

 

  1. Appraisals should avoid inflammatory and emotive language.

 

  1. Appraisal results should be treated as private and confidential information. Record storage should be secure and controlled.

 

  1. 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
Types of Employee Engagement Process implemented in the companies
How to identify and apply performance management to get the best output from it?
How the job analysis can best benefit to the company
Balance scorecard is necessary for achieving Goals of performance management
Types of Employee Engagement Process implemented in the companies
How to identify and apply performance management to get the best output from it?
How the job analysis can best benefit to the company
Balance scorecard is necessary for achieving Goals of performance management