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Legal Issues of Performance Management

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Legal Issues of Performance Management

Legal issues associated with a performance management system can vary, but as Herman Aguinis states “performance management systems that are fair and acceptable to the employees are also legally sound” (Aguinis, 2013). The following paper will review some of the most common mistakes found in performance management systems that allow for legal implications to take place. The primary focus will be directed towards procedural standardization and implementing them equally with all employees. The secondary focus will examine how improper documentation leads to legal implications because of a lack of showing reason for decisions of no pay raise or even termination of employment.
Procedural Standardization
Setting up a performance management system has many aspects, but one of the areas it could be detrimental for an organization is how they standardize procedures for all employees to follow when describing another employee within reviews. In this manner there cannot be what is referred to as a double standard. Double standards are defined by Dictionary.com as “any code or set of principles containing different provisions for one group of people than for another” (Dictionary.com, 2015). A great example of procedural standardization is best found in an article written by Kathleen Davis for the Fast Company website. Within Kathleen’s article she describes how words appear on men and women’s reviews and the manner of which they appear to present a double standard. Kathleen references a report from Fortune.com where “critical feedback was doled out in a much higher ratio to women: 58.9% of men’s reviews contained critical feedback, while an overwhelming 87.9% of the reviews received by women did” (Davis, 2014). Kathleen goes on further to state “abrasive alone was used 17 times to describe 13 different women but the word never

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