StopNShopToday, Inc.’s management team has implemented several of your ideas on incentive pay and is now reviewing the company’s performance appraisal forms. These appraisal forms are very old: No one remembers where the forms came from or who made them. When the annual performance appraisals window comes up each store year, managers and assistant managers cringe. This reaction does not occur because the managers hate doing performance appraisals, they simply have not seen very much positive impact from the appraisal discussions, and at least one employee always reacts badly and has a downturn in performance as a result of the criticism. The managers feel that being honest with some employees is a huge risk, and they are not sure the process is worth the trouble.
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