Two short cases that discuss performance appraisal situations in organizations (based on real situations).
Answer the questions listed after each case. Your responses should be double-spaced and not exceed 1 page
Short Case 1: Company XYZ is a mid-sized R&D organization that is largely based on team work. As a result,
semi-annual performance evaluations are conducted at the team and not individual level. Team A received a
mediocre rating on the most recent performance evaluation. The manager explained that his appraisal was
objective and was solely based on the mediocre quality of the last two projects the team completed which was
also evidenced by mediocre customers’ evaluations. Although the team accepted the rating as very objective,
one team member expressed his strong disagreement. He said that his own contribution was error-free and he
should not be punished for the mistakes of his team members. He demanded to change his performance rating
from the mediocre to high.
1. As a manager, what would you do in this situation? What would be your response to the employee? Justify
your answer. [This is a reactive approach. You need to deal with the situation as it is.]
2. Proactively, would you do to avoid such situations in the future? Explain.
Short Case 2: Company ZYX is a small consulting organization with 40 employees. The manager who is
responsible for employee performance appraisal has a particular way of conducting it. He has a firm belief that
formal performance evaluations (with developed criteria, ratings, formal discussions etc.) are an absolute
waste of time and should never be done. Instead, he thinks that he is well familiar with each employee’s work
and achievements, and he can easily tell “what they are worth” by interacting with them and observing their
performance on a daily basis. As a result, the manager periodically stops at employees’ desks, talks to them,
asks about their progress on projects and discusses other work-related issues. Employees have a lot of daily
feedback and seem to like it. However, no written performance appraisal forms are ever filled in. When it
comes to pay raises and promotion, the manager makes his decisions and announces them to employees
1. Do you think this manager’s performance appraisal is sustainable in the long run? Explain your answer?
2. Would you suggest any changes in the manager’s approach to performance appraisal? Explain.
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