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You are the Director of Human Resources for the internet matchmaking company, "People, people who need people.com". In recent months, your company has been sued by three employees who were laid off based on information in their performance appraisals. These employees have alleged that their performance appraisals did not accurately reflect their work and were based on inaccurate interpretations of work performance by the managers who prepared the appraisals. One employee has won her case and two others are currently pending in court.

You have done some preliminary analysis and have discovered the problems lie not in your administrative processes, but in how your managers rate and measure their employee's performance. Before you can take any corrective actions (training, etc.), it will be important for you to identify specific problems and come up with solutions that will help prevent those problems from reoccurring.

Identify and describe at least 4-6 problems that occur when managers complete performance reviews. Since the focus of our class is on decision making, focus on problems that relate to decision issues in your findings.

Provide specific suggestions for each of the problems you identified so that supervisors can eliminate or reduce each of the problems identified. Try to avoid "general" recommendations as they rarely cover or help correct all the problems you will identify.

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Solution Summary

Identify and describe at least 4-6 problems that occur when managers complete performance reviews. Since the focus of our class is on decision making, focus on problems that relate to decision issues in your findings.

Solution Preview

When managers complete performance reviews, a host of problems can arise. Some of these issues are:

1) Bias is one of the most important problems arising during the performance reviews. Positive or negative Bias among managers towards certain employees can significantly affect the subjective decisions made by the managers during performance reviews. It is often seen that the managers conducting the review and employee have a personal friendship outside of work and both individuals can't differentiate their manager-employee role from their friend-friend relationship, thereby resulting in bias in decision making.

In order to overcome this issue, managers should be trained and told to differentiate between their professional and personal relationships. They should be trained to eliminate bias in their behavior or decision making styles during performance reviews.

2) Another common issue is that the managers and employees differ on how goals are set - one manager/employee feels that stretch goals are set to ...

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