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Running head: TOPIC AND THESIS 1

TOPIC AND THESIS 2

Topic and Thesis Statement

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Topic

Ethics in Performance Appraisal and Compensation

Overview

Performance appraisal (PA) is a process that is employed by organizations to measure and evaluate individual employee behaviors and or accomplishment of set goals for a finite time period. The measurement and evaluation is conducted, in most cases, annually by the supervisors of the employees. The judgments or the outcome of the evaluations is then used to make administrative decisions like promotion, salary increase, and termination among others that directly have an impact on the employee. Depending on the relationship of the employee and the supervisor, the outcomes of the evaluation might be manipulated either to favor the employee or to be against the employee. It is not that in every performance appraisal activity that the decision is fair. Therefore, ethics are very important in ensuring that there is fair evaluation and judgment in performance appraisal and compensation practice.

Thesis

A fair judgment in performance appraisal motivates the employee and increases productivity while on the other hand; an unfair performance appraisal is detrimental to the performance and productivity of an employee. While there are many reasons that a judgment of the performance appraisal can be manipulated, measures should be put in place to ensure that performance appraisal exercises are conducted fairly for motivation and productivity within an organization.