Hi,
I am working on a project that focuses on the role of ethics in performance appraisals. The procedures implemented in organizations must ensure transparency. This case study revolves around performance appraisal.
The Case of the Performance Appraisal
Frank recently became the chief financial officer and a member of the Executive Committee at a medium-sized family-owned contracting business. Despite initial concerns about his fit with the company culture, he accepted the position. The company decided to downsize, and Frank, drawing from past experience, believed it was necessary for the company's long-term health. The CEO entrusted Frank to lead the downsizing ethically, relying on his judgment over the personnel department head.
Following Frank's recommendation, the company decided to base lay-off decisions on employees' annual performance appraisal scores. Each department manager would rank employees based on their last three appraisal scores. However, Frank discovered discrepancies in three departments where employees had "N/A" for evaluation scores due to informal evaluations for long-time employees.
When Frank raised this issue with the CEO, he learned that the long-time employees were expected to retire soon. The CEO justified the decision, emphasizing the need to prioritize younger employees and save jobs. Despite reservations, Frank was assured that the Executive Committee valued his contributions.
Frank left the CEO's office feeling conflicted. He faced an ethical dilemma: whether to align with the CEO's decisions or challenge them. This situation raises questions about ethical conduct, career preservation, and family interests.
What do you think Frank should do in this scenario?