What Should You Do If Your Company Skips Your Appraisal Without Reason?

Hi,

If a company defaults in appraising an employee without reason who has been a star performer (other employees are appraised and got an increment) and also denies to pay the annual component, which is part of the salary, what should an employee do? Please guide.

Anagha

Hi,

To begin with, the concerned employee should sit down and first ask his immediate superior why he has not been appraised and given even a normal raise.

Did the denial of appraisal happen all of a sudden? Surely, throughout the whole year, there should have been events indicating that everything is not going smoothly.

But what constitutes a normal appraisal in your company? Is it a practice to discuss the appraisal with the appraisee and obtain his consent, or is it just an Annual Confidential Report like in the Government (where even adverse remarks are at least shown to the appraisee)?

You could receive better responses by elaborating on the appraisal process in your company.

Based on the limited information provided in your email, the only thing the concerned employee may be able to do is to ask why he has not been appraised and then proceed with an appropriate course of action regarding his association with the company (without revealing his intentions). However, if he has otherwise been a star performer, what reportedly happened to him is too severe, stark, and even unimaginable.

People do not change overnight by 180 degrees, and even if they do, it might be in response to a specific situation. As an HR professional, I find it hard to believe that even during the year under review, the individual's performance was deteriorating, and neither the company nor the individual were aware of this gradual decline. Perhaps your story contains more facts that we are not aware of.

Overall, this response addresses a broad range of situations and responses, providing valuable insights for management to learn from.

Regards,

Samvedan

September 4, 2006

Hi Samvedan,

Thank you for the response. The facts are as follows:

1. He joined the company as BDM and was performing really well. He wanted to resign as his family was moving to a different metro where the company didn't have their office. The company proposed to him that he should start the operation there as the Profit Centre Head. When he inquired about the appraisal and salary increase due to the new responsibilities and challenges, he was informed that once the office was set up, he would be appraised, and an increment would be given. His designation was Profit Centre Head with no change in his salary.

After setting up the branch and when it began generating revenue, he reminded the HR and the Head of Operations about the promised appraisal and increment but was only told that it would be done. He gradually lost interest and requested his long overdue annual component. One day, without any explanation, the Head called him and pressured him to resign. He refused and asked for the reason but received no reply. He is still working but feeling unhappy. Please guide.

If you need any clarification, please email me.

Warm Regards,

Anagha

Hi,

Now, there are relevant facts, and I will respond to these facts as frozen reality!

I think the company has acted absolutely in a non-professional way. It is more damaging to the company than to the individual. I do not mind if he was made to go and start operations without being granted an appropriate salary rise (which would have been for the past year's performance anyway). This can happen to the best of us. What he suffered (going and proving himself once again) could be termed as "pangs of growth."

But what seems to have happened in reality was he was not only being taken advantage of but was also unjustifiably compelled to resign. It can only be his helplessness that he continued to be employed with such an employer!! His self-respect should force him to leave this organization at the first possible opportunity!

Decidedly, the company has treated him unfairly, wrongfully, and crudely and took advantage of his helplessness. The culture of the organization seems to be terrible, and the company cannot have any justifiable reason to act in the manner it did in this case. No professionally competent person would ever like to be employed with such a company and cannot be blamed.

After all is said and done, I find that the events narrated in the case are too gross to be real. I have experienced different situations, but this one takes the cake!!!

Regards,

Samvedan

September 6, 2006

Dear Samvedan,

Does it mean he should resign from the company and not ask for any annual component due? Is there any legal remedy? He had continued in this organization as he was given a challenging assignment and since he was assured of the increment and benefits, he took this assignment. Now that the branch is set up and making a profit, they want someone to head this branch and are compelling him to resign.

Yes, it's true, it is happening with one of the persons.

Please reply.

Anagha

Hi,

As he is not a workman under the Industrial Disputes Act 1947, he has no remedy in labor law. Under civil law, I do not think he has, but I do not know.

See, the promises made to him are, in my view, not enforceable at law. It is only the ethics, sense of justice, fair play, and morality of the organization that will compel the company management to act one way or the other. I think he has little hope of being treated fairly at the hands of such uncouth management.

Whether he should resign forthwith - yes, for the sake of his pride and dignity, but being practical, he has compulsions of not being employed even for a day (the resume gets a blot and the chances of getting a new job when you are unemployed are far too less anyway.

I think he should resign but only after securing alternate employment (even if at a lower salary). I strongly recommend that once he resigns under the present conditions, he not withdraw the resignation under any conditions (even if the company apologizes and/or doubles his emoluments or offers to compensate in any other way.) The psychological relations and equation with the employer are shot completely with such treatment being meted out by the company.

I repeat that the case is too gross to be real. It is very unfortunate that such things happen in the corporate world at all.

Regards,

Samvedan

September 7, 2006

Hi Anagha,

The case is not unique as I came across similar ones. Going by your narration, as Samvedan pointed out, the organization lacks the vital culture and attitude towards employees. The decision seems to be impulsive and arrogantly autocratic. In the process, the Head of the organization has not thought about the cascading effect - however slow it might be - that this incident would have amongst other employees. If continued in the same line, the organization will sooner or later experience brain drain.

The affected employee can only hope and keep demanding his dues. He should secure a job and leave asap.

Regards,
Venkat

Dear Samvedan and Venkat,

Thank you for sharing your views. It will help him in making a decision. He has decided to leave and at the same time is asking the company to clear the dues.

RGS
Anagha