Case Study

Evaluating a Performance Appraisal Implementation

A software company is struggling with low team morale and wants to improve its performance review process. They decide to implement a system where employees receive anonymous feedback from their managers, peers, and direct reports. The leadership team announces that the final, averaged score from this feedback will be the only factor used to determine which employees receive promotions and annual bonuses. Based on the primary purpose of this type of appraisal system, critique the company's plan. What is the most significant risk of this implementation strategy?

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Updated 2025-10-09

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