Current Dilemmas for the Employee Reward

Current Dilemmas for the Employee Reward

Current Dilemmas for the Employee Reward

Introduction

In managers' dynamic, real-world environments, they often feel it is necessary to exercise some creative discretion over employee ratings. Most managers do not describe their ratings of subordinates in performance appraisals as completely honest or accurate. The inaccuracy is often in the form of inflated ratings. They justify the inaccuracy by sighting, among other things, the need to avoid confrontation with subordinates, damaging working relationships, and creating permanent written documents which may later harm a subordinate's career. Many of these motives are not only well intentioned, but are designed to enhance individual, unit, and organizational performance (some of the ultimate objectives of performance appraisal systems.)

This paper examines the ethics of this sort of deliberate manipulation of performance appraisal systems. It suggests that at the organizational level, performance appraisal is usually seen as an end in itself, and a formalist ethical critique is applied. At the managerial level, performance appraisal is usually seen as a means to an end, and a utilitarian critique is applied. Since both perspectives are essential, we conclude that a Janus-Headed analysis is needed. We suggest some duties and obligations for both the organization and the manager engaged in performance appraisal.

Clinton O. Longenecker is an Associate Professor of Management at the University of Toledo and has published a variety of articles in both academic and professional journals on the topic of performance appraisal. Dean C. Ludwig is an Assistant Professor of Marketing at the University of Toledo whose teaching and research focuses on ethical issues in marketing and management. Both have extensive industrial and educational experience and are active management consultants.

Discussion

The performance appraisal is an integral part of a human resource management system. In addition to allocating rewards, organizations use appraisals to provide developmental advice to employees, as well as obtain their perspectives and justice perceptions about their jobs, departments, managers and organizations (Erdogan, 2002; Holbrook, 2002; Longenecker, 1997). Ideally, appraisal discussions provide employees with useful feedback they can immediately apply to improve their performance. This feedback includes suggestions for change, as well as encouragement to continue with positive behaviors. Managers show employees how improving their overall performance and developing new skills will lead to additional responsibilities, promotions and increased monetary benefits. Employees appreciate this honest feedback and become motivated to improve their performance. In addition, managers benefit by receiving insightful input on ways to improve both their leadership styles and departmental operations. The relationship between the manager and employee is strengthened by this interchange of ideas and impressions.

Most would agree however, that organizations' performance appraisal processes operate in ways that are less than ideal (Holbrook, 2002; Kane, 1994; Murphy and Cleveland, 1995). Time pressures, complex appraisal forms, fear and defensiveness are all factors that may inhibit the usefulness and accuracy of the appraisal and its discussion (Buckley, 2001; Longenecker, 1997; Roberts, 1998). Managers often feel constrained by their simultaneous roles of evaluator and coach (Cederblom, 1982); usually, the ...