ABSTRACT
Annual evaluation systems began as simple ways for managers to counsel employees, set goals, identify strengths and weaknesses, and justify those employees' salaries. The objective was to evaluate an employee's performance relative to established standards. When completing employee evaluations, managers naturally exhibit bias in their ratings. When a manager can remove some of the bias from the evaluation process, performance appraisals become much more meaningful for employee development, decision making, and compensation adjustments. An employee receiving an unfavorable evaluation could claim that the evaluation is a ploy for discrimination based on age in violation of the Age Discrimination Act. Evaluations should also be considered as significant potential evidence for an employer's defense. Properly documented evaluations build paper trails that favor employers in defending against lawsuits. Participation is promoted by self-appraisals, joint development of performance goals and standards, and active solicitation of employee input during the manager and employee development process.
