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Case Study 4

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33 views1 page

Case Study 4

case study

Uploaded by

realguy556789
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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CASE STUDY-4

As the production supervisor for a company, Allen was generally well regarded by most of
his subordinates. Allen was an easy going individual who tried to help his employees in any
way he could. If a worker needed a small loan until payday, he would dig into his pocket with
no questions asked. Should an employee need some time off to attend to a personal problem,
Allen would not block the individuals pay rather, he would take up the slack himself until the
worker returned. Everything had been going smoothly, at least until the last performance
appraisal period. One of Allen’s workers, Bill, had been experiencing a large number of
personal problems for the past year. Bill’s wife had been sick much of the time and her
medical expenses were high. Bill’s son had a speech impediment and the doctors had
recommended a special clinic. Bill, who had already borrowed the limit the bank would loan,
he had become upset and despondent over his general circumstances. When it was time for
Bill’s annual performance appraisal, Allen decided he was going to do as much as possible to
help him. Although Bill could not be considered more than an average worker, Allen rated
him outstanding in virtually every category. Because the firm’s compensation system was
heavily tied to performance appraisal, Bill would be eligible for a merit increase of 10% in
addition to a regular cost of living raise. Allen explained to Bill why he was giving him such
ratings, and Bill acknowledged that his performance had really been no better than average.
Bill was very grateful and expressed this to Allen. As Bill left the office, he was excitedly
looking forward to telling his friends about what a wonderful boss he had. Seeing Bill simile
as he left gave Allen a warm feeling.
Questions: a) From company standpoint, what difficulties might Allen’s performance
appraisal practices create?
b) What can Allen do now to diminish the negative impact of his evaluation of Bill?

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