Performance appraisals: more than just a feedback tool. Legal documentation for employment decisions.

Unjust discharge suits filed on behalf of disgruntled employees are becoming frequent occurrences. The employment-at-will doctrine, which has protected an employer's right to discharge employees for any reason or no reason at all, is continually being challenged. This stream of litigation has caused organizations to take a new look at how employment decisions are made. The result has been a renewed interest in the performance appraisal process--a key method in providing feedback and documenting worker performance. Aside from providing organizations with legal documentation, effective performance appraisals provide organizations with several benefits. First, feedback fosters positive actions and eliminates inappropriate behaviors. Second, the supervisor-employee relationship is improved. Third, effective performance appraisals increase motivation, morale, and job satisfaction--ultimately resulting in increased productivity.