Please read the following and respond to the question: Peak Power, a medium-size

Question

Please read the following and respond to the question: Peak Power, a medium-size hydroelectric power plant near Seattle, Washington, hires you as the HR consultant to design a new appraisal system. The plant's present 10- year old appraisal system considers the cumulative ratings over the years, for evaluating promotion or salary raise issues. Recent problems in other areas of HR management at the plant and the fear of potential lawsuits led Peak's president to the decision. What is your general evaluation of this appraisal system?

Explanation / Answer

The system is faulty and gives preference to the experience without recognizing the current efforts of the new comers. For example, the people with 10 years of experience will be promoted and get a better raise even if they perform poorly in comparison to new comers.

This system will encourage stagnation in the workforce and deter the introduction of new ideas and innovation. Also, as the time passes, the rating of the previous time periods becomes less relevant.

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