Question

Which of the following is true regarding performance appraisals?

performance appraisals are key pieces of evidence in many discrimination cases

most employers are legally required to conduct performance appraisals

an inaccurate performance appraisal, standing alone, always creates liability for the employer

employers may appraise employees randomly and the failure to evaluate some employees without evaluating other gives rise to no possible liability

Answer 1

The following is true for performance appraisals::

> an inaccurate performance appraisal, standing alone, always creates liability for the employer

When performance appraisals are inaccurate, the performing employees might be rewarded lesser than they deserved and non-performing employees might get rewarded more. This would make high performing employees get demotivated and overall performance of the employees would go down and would badly affect the company.