I need your opinion about unfair performance appraisal in our company.

As the production supervisor for a company, Allan was generally well regarded by most of his subordinates. Allan was an easygoing individual who tried to help his employees in any way he could. If a worker needed a small loan until payday, he would dig into his pocket with no questions asked. Should an employee need some time off to attend to a personal problem, Allan would not dock the individual's pay; rather, he would take up the slack himself until the worker returned.

Everything had been going smoothly, at least until the last performance appraisal period. One of Allan’s workers, Bill, had been experiencing a large number of personal problems for the past year. Bill’s wife had been sick much of the time and her medical expenses were high. Bill's son had a speech impediment and the doctors had recommended a special clinic. Bill, who had already borrowed the limit the bank would loan, he had become upset and despondent over his general circumstances.

When it was time for Bill's annual performance appraisal, Allan decided he was going to do as much as possible to help him. Although Bill could not be considered more than an average worker, Allan rated him outstanding in virtually every category. Because the firm's compensation system was heavily tied to performance appraisal, Bill would be eligible for a merit increase of 10 percent in addition to a regular cost-of-living raise.

Allan explained to Bill why he was giving him such ratings, and Bill acknowledged that his performance had really been no better than average. Bill was very grateful and expressed this to Allan. As Bill left the office, he was excitedly looking forward to telling his friends about what a wonderful boss he had. Seeing Bill smile as he left gave Allan a warm feeling.

1- From company standpoint, what difficulties might Allan performance appraisal practices create?

2- What can Allan do now to diminish the negative impact of his evaluation of Bill?

From United Arab Emirates, Dubai
Hello
Very interesting case study and practcal too.
2- What can Allan do now to diminish the negative impact of his evaluation of Bill?
Your question 1.
1- From company standpoint, what difficulties might Allan performance appraisal practices create?
My answer to thgis question that the Company will not face any difficulty. The reason is your description of the supervisor. which is reproduced .
I have come across with few such supervisors in my career and I was also aware of some of their recommendations based on humanitarion consideration rather than performance consideration.And to my surprise, noone raised any issue and supported the cause of such supervisors by making good the loss.
If the Company takes a decision to stop this increase, then also nothing will happen. Company in both ways will not lose .
Siva

From India, Chennai
Thanks Siva, but I think there is an impact to the company.

In my opinion, generosity to employees is not inherently wrong. When properly doled out, generosity enhances employee morale, which in turn could lead to better work performance or work efficiency. An environment where morale is high could have positive impact when viewed within the spectrum of labor-management relations.

The impact on the company could be work inefficiency (both at the level of employees who think they can get away with Allan's generosity, and those who are discontented with the unequal treatment given them). When left unabated, discontent could transform into concrete labor problems particularly within the context of employee discrimination.

--in diminishing the negative impact of supervisor's evaluation:

Allan can make sure that when Bill returns, he tries to make up for the outputs he failed to make during his absence. He could ask Bill to do more work or render overtime service. He should impress upon Bill that his generosity towards the latter is not an indicator of his lack of desire to encourage professionalism in the work place.

Allan should warn Bill that much as he values the latter’s feelings, the company should not be left to suffer, otherwise both of them will suffer the negative effects if the company suffers loss of profits.


--inviting HR practitioners to comment on my opinion or add comments.

From United Arab Emirates, Dubai
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