The Legal Ramifications of Performance Appraisal: The Growing Significance

Abstract

The recent turmoil in the business environment brought on by the numerous mergers, acquisitions, reorganizations, downsizings, and spinoffs has provided impetus to the growing number of cases involving discrimination litigation. Performance appraisal is frequently a part of this litigation, most notably included in cases addressing layoffs, promotions, discharge, merit pay, or a combination of these actions. The critical human resource decisions affecting these actions are normally judgments regarding the performance of the employee. Evaluations of that performance should be based on the results of performance appraisal processes that incorporated concerns for organizational justice and fairness.