LEGAL ISSUES WITH GLOBAL PERFORMANCE RATINGS

Legal issues with Global Performance Ratings



Legal issues with Global Performance Ratings

Introduction

The Human Resource Management department of any corporate organization uses global performance rating system to evaluate the performance of the employees, in particular the managers of departments. It is an annual checking procedure which evaluates the performance of the department and individuals for defining the appraisal for the employees.

Majority organizations use global rating system for evaluating the overall performance of the employees. It is effective in the sense that it helps the employer to make decisions in regard with paying bonus, allocating increments on the basis of performance but fails to rectify the problems associated with employees. Employers use multiple techniques like the essay method, behaviorally anchored rating scales and graphic rating scale to enhance the global rating method. The global rating method incorporates several drawbacks mainly human resource based or legal issues.

Discussion

Legal Issues with Global Performance Rating

In analyzing the legal issues with global rating method, the employer is liable under many US employee benefits acts. The issues relate with the nature of the employment relationship and performance appraisals. The legal issues are mainly concerned with the Civil Rights Act of 1964, Age Discrimination in Employment Act, Americans with Disability Act, Equal Pay Act, Defamation, negligence and misrepresentation. The performance appraisal issues are concerned under the heading of Fair Labor Standards act and Family and Medical Leave Act.

As defined earlier the global performance rating procedure brings the employer to face many legal technicalities when an employee is fired or his appraisal is not provided. The history of US law provides insight in many of the cases. The case of EEOC vs. Johnson & Higgins (1971) was a case highlighting the legal constraint of ADEA. In this case EEOC was rewarded against Johnson & Higgins.

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