ABSTRACT
This chapter discusses several different approaches to compensation in current use in business, and analyzes the fairness of each approach. It discusses the importance of truth-telling in the performance appraisal process. The chapter focuses on the role of the manager in evaluating the performance of employees, and determining their compensation. In a number of employment situations, performance on the job does not determine or even influence raises and bonuses. Compensation granted to some or all of the employees reporting to a manager, and the basis for such increases and their amounts will be the manager's evaluation of each employee's performance during a specified period. The decision to lie on Granny's evaluation raises the question of what other lies might have been told or are going to be told on performance appraisals. The rights and duties perspective says that the moral act is the one that recognizes the rights of others and the duties those rights impose on the actor.
