There is a delicate balance between legal requirements, ethical responsibilities, and human reactions' effect on employee evaluation and feedback. Organizations need to design performance systems that are both legally compliant and perceived as fair by employees. By ensuring fair and ethical employee evaluations, the performance management system can effectively motivate employees and support performance throughout the organization. A fair and ethical performance management system provides managers with a good foundation for performance discussions with employees.

However, not all performance discussions are perceived positively. Therefore, it is important that organizations train managers and employees on the benefit of performance discussions and how they can be conducted effectively. Some organizations also use pay for performance strategies to reward employee performance, so it is important that employee performance is evaluated accurately.

Read the following article: Employee Performance Evaluation Laws: 2025 Guide to Key U.S. and Global Regulations.

• What laws should be considered when conducting a performance evaluation?
• When conducting performance evaluations, what can managers do to prevent discrimination?
• What ethical principles should be considered when rewarding employee performance?
• As a manager, what would you do if an employee disagreed with their performance review?

Use this template to complete this assignment: U5 IP Template.