ACCA Applied Knowledge · Business and Technology · Review and appraisal of individual performance
An employee has received a rating of 'unsatisfactory' in two consecutive appraisals despite agreed support and training. Her manager is considering disciplinary action. Which approach is most consistent with good practice?
Good practice is to follow the formal capability or disciplinary procedure, using appraisal records as evidence and giving warnings and a chance to improve. Appraisals support action, but fairness needs due process. Immediate dismissal or unilateral demotion ignores this, and a pay rise would not address the underperformance.
- ADismiss her immediately without notice, since the appraisals are documented evidence
- BFollow the organisation's formal capability or disciplinary procedure, using the appraisal records as evidence, with warnings and a chance to improveCorrect
- CIgnore the ratings and raise her pay to improve motivation
- DMove her to a lower grade without discussion
Explanation
Appraisal records can support capability or disciplinary action, but fairness requires following the formal procedure: stages, warnings, opportunity to improve and right to respond. Immediate dismissal or unilateral demotion ignores due process, and raising pay does not address underperformance.
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