ACCA Applied Knowledge · Business and Technology · Review and appraisal of individual performance
A manager uses appraisal interviews for three purposes at once: setting pay, planning development and recording disciplinary warnings. Which is the main risk of combining these purposes in a single interview?
The main risk is that employees become defensive and conceal weaknesses or development needs because pay and discipline are at stake. This reduces the openness needed for development discussions, so many organisations separate reward reviews from developmental appraisal conversations.
- AEmployees may become defensive and hide development needs when they know pay is at stakeCorrect
- BThe appraisal will fail to produce any written record
- CTraining needs will be identified too accurately
- DManagers will be unable to give any feedback on performance
Explanation
When pay or discipline is linked to the same discussion, employees are likely to emphasise strengths and conceal weaknesses, reducing the candour needed for development planning. The other options describe outcomes not caused by combining purposes.
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