Article 3 - Ethics in Performance Appraisal: Ensuring Fairness and Dignity in Employee Evaluation
Ethical performance appraisal is the essence of ethical human resource management. It ensures that the performance evaluation of workers is ethical, transparent, and fair, rather than personal bias or organisational politics of one individual. According to Armstrong and Taylor (2023) performance appraisal is not a system to measure the output of the workers, it is to maintain strong relationships, communication, and organisational culture. Ethical performance appraisal is respectful of equity, confidentiality, and diversity and acknowledges effort at work with honesty and integrity.
Ethical performance evaluation systems in the companies of the current era preserve the morale and legality of the workers and reduce conflict and grievances. Performance evaluations, being ethically performed, generate accountability, increase commitment, and keep an organisation intact as an employer of choice.
Principles of Ethical Performance
Ethical performance appraisal derives its origin grounded in fairness, transparency, respect, and consistency. Those guiding principles inform every step of the assessment process — goal setting via feedback. As per Dessler (2021), bias, favouritism, and discrimination are common risks that undermine the standard of ethical appraisal systems.
To maintain performance ethical standards in HRM, Organisations should follow:
- Define clear, measurable, and work-related standards.
- Provide honest feedback on evidence-based facts instead of opinion-based evidence.
- Keep all the discussion concerning appraisals under the umbrella of confidentiality.
- Grant employees an opportunity to discuss and object. reinforcing procedural justice (Noe et al., 2020).
In making these ethical requirements, performance reviews are a receptive discussion rather than an administrative process.
International Perspectives
Globally, many organisations have integrated ethics into performance management. For example, Google has a culture of open peer review and feedback ("OKRs"—Objectives and Key Results) in which goals are taken out into the open across the entire company so that individuals stay accountable and not biased (Schmidt & Rosenberg, 2014). Likewise, Unilever integrates ethical leadership into its measurement of performance, connecting employee behaviour to business values and sustainability (Unilever, 2023).
Besides that, global ethics such as the United Nations Global Compact (UNGC) and OECD Guidelines for Multinational Enterprises propose equitable appraisal processes in ethical work. The guidelines would compel companies to deliver performance appraisal free from bias and with human dignity (UN Global Compact, 2022).
These international examples promote that ethical appraisal is a moral necessity and also a strategic process of trust and employee alignment with organisational purpose.
Sri Lankan Setting and Instances
Sri Lankan performance appraisal values are progressively becoming essential in the light of added emphasis on corporate governance and ethical employment practice. Cultural values, power distance, and conventional hierarchical styles are typically what influence assessment results in Sri Lanka.
According to Jayawardana and O'Donnell (2009), empirical studies conducted by them show Sri Lankan organisations are occasionally victims of leniency bias and subjectivity in conducting appraisal processes. Nevertheless, some large corporations have adopted ethical controls to reduce the problems.
For example, Sri Lanka's companies like John Keells Holdings PLC has adopted competency-based systems for performance measurement linking measurement of performance with measurable outcomes, review sessions, and grievance procedures to assure fairness. In the same manner, Dialog Axiata PLC follows an open system of performance management with ethical leadership and equal opportunity principles.
These trends are indicative of the coming interfusion of Sri Lankan organisations with global ethical practice and domestic culture compatibility.
Challenges and Ethical Dilemmas
Despite progress, there are still ethical concerns surfacing in performance measurement systems globally. Chances of an incompatibility between goal achievement and equity, e.g., promotion or bonuses, exist. Nepotism, sexism, or fear of delivering bad news can taint ratings. Dessler (2021) confirms that flawed rater training and ill-defined standards are to blame for inconsistent and unethical ratings.
To overcome such problems, organisations need to be bothered with ethical training of the appraisers, provide mechanisms of appeal, and inject ethics into performance management policies. Through technology-facilitated systems of appraisal, with ethically devised configurations, subjectivity can be controlled, and openness and transparency can be increased.
Conclusion
Ethical performance appraisal is important for building trust, fairness, and transparency within organisations. By the ethical principle-measured performance, employee motivation not only increases but organisational legitimacy and integrity as well. Equity Theory supports this discussion, which highlights that fair treatment in appraisals motivates employees and fosters commitment (Adams, 1965). Also, Psychological Contract Theory shows that ethical performance management fulfils mutual expectations, reinforcing trust and accountability (Rousseau, 1995). Locally and globally, practice demonstrates that ethics in equity-based appraisals, measurable standards, and communication promote an accountability culture and respect for one another. That ethics are learned under performance management is therefore not an HR necessity but an imperative to organisational long-term success.
References
Armstrong, M. and Taylor, S. (2023) Armstrong’s Handbook of Human Resource Management Practice. 17th ed. Kogan Page.
Dessler, G. (2021) Human Resource Management. 17th ed. Pearson Education.
Noe, R.A., Hollenbeck, J.R., Gerhart, B. and Wright, P.M. (2020) Fundamentals of Human Resource Management. 9th ed. McGraw-Hill Education.
Schmidt, E. and Rosenberg, J. (2014) How Google Works. Grand Central Publishing.
Unilever (2023) Sustainable Living and Performance Management. Available at: https://www.unilever.com
UN Global Compact (2022) The Ten Principles of the UN Global Compact. Available at: https://www.unglobalcompact.org/what-is-gc/mission/principles
Jayawardana, A. & O’Donnell, M., 2009. Devolution, job enrichment and workplace performance in Sri Lanka’s garment industry. [online] Available at: https://www.researchgate.net/publication/258135033_Devolution_Job_Enrichment_and_Workplace_Performance_in_Sri_Lanka%27s_Garment_Industry
John Keells Holdings PLC (2023) Annual Report 2023 – Human Capital Section. Available at: https://www.keells.com
Dialog Axiata PLC (2023) Sustainability Report 2023. Available at: https://www.dialog.lk
Adams, J.S. (1965) Inequity in social exchange. In: Berkowitz, L. (ed.) Advances in Experimental Social Psychology. Vol. 2. New York: Academic Press, pp. 267–299. Available at: DOI Link to the Volume/Article
Rousseau, D.M. (1995) Psychological Contracts in Organizations: Understanding Written and Unwritten Agreements. Thousand Oaks, CA: SAGE Publications. Available at: Google Books Link
Fairness, transparency, and respect are successfully connected to contemporary HRM practices in this well-organized and perceptive discussion of ethical performance appraisal. Together with the Sri Lankan context, the international examples from Google and Unilever provide significant comparative depth and demonstrate how ethical frameworks such as the UNGC impact local practice. Because of your critical awareness and focus on bias, rater subjectivity, and the need for ethical training, this is a well-considered and globally relevant reflection on how ethical appraisal advances employee dignity and organizational legitimacy. Excellent work!
ReplyDeleteSashini, thank you for your thoughtful comment. I appreciate your recognition of how fairness, transparency, and respect connect to contemporary HRM practices in ethical performance appraisal. I am glad to see that you found my international examples, like Google, Unilever & with the Sri Lankan context, added meaningful input to the discussion. Also, you are correct on bias, rater subjectivity, and the importance of ethical training is especially important in advancing employee dignity and organisational legitimacy. Thank you again for your encouraging feedback.
DeleteThis article clearly explains how ethical performance appraisal builds fairness, transparency, and trust within organizations. When appraisals are based on honesty, equity, and open dialogue, they not only improve performance but also strengthen organizational culture and employee commitment.
ReplyDeleteLuckmee, thank you for your comment. I’m glad you have recognised how ethical performance appraisal builds fairness, transparency, and trust. You are correct that honesty, equity, and open dialogue not only improve performance but also strengthen organisational culture and employee commitment.
DeleteThis is a well-written blog post. The inclusion of the Sri Lankan perspective makes this piece even stronger, as it brings cultural relevance and practical grounding. It’s refreshing to see local organizations like John Keells Holdings and Dialog Axiata recognized for adopting competency based and transparent systems that helps bridge global ethical standards with regional realities.
ReplyDeleteOne point that stood out to me is how you linked appraisal ethics to broader principles of human dignity and procedural justice that connection is powerful. It makes me wonder though, how can organizations ensure that digital or AI-driven performance management systems remain truly ethical, especially as automation becomes more common in HR?
Maintaining fairness and accountability in algorithm-based evaluations might be the next big challenge worth exploring.
Shashi, thank you for your interesting comment. I appreciate your recognition of the Sri Lankan perspective and the examples from John Keells Holdings and Dialog Axiata, as they help to connect global ethical standards within the local context. I like your point about linking appraisal ethics with human dignity and procedural justice, and it is truly important. Thank you for your valid question. Organisations can ensure digital and AI-driven appraisal systems remain ethical by using transparent algorithms, auditing data inputs, monitoring bias, and keeping human oversight in final decisions. This helps maintain fairness and accountability in algorithm-based evaluations and ensures that technology supports, not replaces, ethical judgment in HR.
DeleteExcellent work, Viraj! Your article portrays a well-articulated and theoretically rooted analysis of ethical performance appraisal. I particularly liked the emphasis that you placed on procedural justice and evidence-based feedback, which, in practice, gets ignored most of the time. Inclusion of international guidelines such as the UNGC and OECD Guidelines enhanced the depth and relevance, whereas the analysis of organizational dynamics in Sri Lanka-specifically, cultural values and influence of hierarchy-provides the local nuance. This is so timely and an important contribution to the growing discussion around ethical HRM. Look forward to seeing more from you!
ReplyDeleteDilrukshi, thank you very much for your encouraging feedback. I appreciate your observation that the article provides a clear analysis of ethical performance appraisal. Especially through procedural justice and evidence-based feedback, which are often missed in practice. I am glad that you found the UNGC and OECD Guidelines added value, and the Sri Lankan cultural context and influence of hierarchy were meaningful to you. It is encouraging to know that the discussion is more relevant and adds value to conversations on ethical HRM. Your support motivates me to continue this work, and I look forward to exploring these important topics further
DeleteThis paragraph clearly highlights the importance of ethical performance appraisal in fostering trust, fairness & transparency. The link between global & local practices strengthens the argument & the conclusion reinforces ethics as a strategic requirement for long term success.
ReplyDeleteAsanka, thank you for the feedback. You have thoroughly understood the importance of ethical performance appraisal in fostering trust, fairness & transparency. I am glad to see that you found my examples international, and the Sri Lankan context is very helpful. I appreciate that your overall understanding came through the analysis of this article.
DeleteThis essay provides a clear, well-structured discussion linking ethics, fairness, and performance management. It effectively combines theory with global and Sri Lankan examples, showing strong understanding and practical insight. Overall, it’s balanced, credible, and academically sound.
ReplyDeleteIndika, thank you for your feedback. I am glad to know that my article effectively combines theory with global and Sri Lankan examples. Your observation on this article clearly links ethics, fairness, and performance management. I appreciate your recognition of the practical insights and strong understanding demonstrated throughout the discussion.
DeleteA thoughtful and well-articulated exploration of how ethics can transform performance appraisal from a compliance activity into a foundation of trust and engagement. The integration of global practices, like Google’s peer-review culture and Unilever’s ethical leadership model, alongside Sri Lankan corporate examples, gives this piece both credibility and local relevance. Your emphasis on fairness, transparency, and accountability reflects a deep understanding of how ethical HRM sustains motivation and organisational integrity. A strong and insightful read that bridges theory with real-world impact.
ReplyDeleteMahesh, thank you for your thoughtful feedback. I am happy to hear that the exploration of my article effectively demonstrates how ethics can transform performance appraisal from a compliance activity into a foundation of trust and engagement. I appreciate your recognition of the global practices, like Google's peer-review culture, Unilever's ethical leadership model & Sri Lankan corporate examples provide both credibility and local relevance. Your observation regarding the emphasis on fairness, transparency, and accountability is correct, as these elements are vital for sustaining motivation and organisational integrity. I'm glad the article successfully bridges theory with real-world impact, and your insightful comments motivate continued work in ethical HRM.
DeleteStrong discussion linking ethical appraisal to organizational trust and fairness. The examples from Google, Unilever, and Sri Lankan companies like John Keells add valuable context. Your emphasis on transparency and procedural justice addresses critical performance management challenges.
ReplyDeleteLivan, thank you for your feedback. I am glad the discussion links ethical appraisal to trust and fairness. The examples from Google, Unilever, and John Keells add useful context. I appreciate your recognition of how transparency addresses key performance management challenges.
DeleteIn this article, the author presents a clear and profound discussion of why ethics is important in performance appraisal, and why fairness, transparency and respect are key in the contemporary HRM. Your rationale that ethical appraisal enhances communication, trust and organizational culture is very strong. The inclusion of international cases such as Google and Unilever, and local organizations in Sri Lanka, such as John Keells and Dialog Axiata, successfully demonstrates how ethical principles can be implemented in varying situations. I also like how you highlight some of the pitfalls like bias and subjectivity, and how you offer some practical suggestions on how to enhance ethical consistency. In general, it is a well-organized article that makes a significant contribution to the idea of ethical HR practices. Continue the great work--your writing helps to promote ethical, fair, and people-focused performance management greatly.
ReplyDeleteDishan, thank you for your valuable feedback. I am glad that the article clearly demonstrates why ethics, fairness, transparency, and respect are important in HRM. I appreciate your recognition that ethical appraisal enhances communication, trust, and a strong organisational culture. I'm glad of your observation in global examples like Google, Unilever & Sri Lankan organisations such as John Keells and Dialog Axiata, which effectively demonstrate how ethical principles apply across different contexts. Your observation about risk, like bias and subjectivity, is correct, while offering practical solutions for ethical consistency. Thank you for your encouraging comment.
DeleteThis is an excellent article. You have discussed how ethics in performance appraisal: ensuring fairness and dignity in employee evaluation. And also, you have discussed about principles of ethical performance and challenges and ethical dilemmas. Furthermore, you have discussed about global and Sri Lankan examples, such as Google, Unilever, and leading Sri Lankan companies like John Keells Holdings and Dialog Axiata, it clearly shows how transparency, competency-based evaluation, and ethical leadership contribute to fairer appraisal processes.
ReplyDeleteDilrangi, thank you for your insightful comment. I appreciate that you have captured the importance of ethics in performance appraisal and the focus on fairness and dignity in employee evaluation. As you said, it is important to discuss the principles of ethical performance, challenges, and ethical dilemmas. Thank you for your observation on the global and Sri Lankan examples, which reinforce how companies like Google, Unilever, John Keells Holdings, and Dialog Axiata demonstrate transparency and competency-based evaluation in real practice. It is encouraging to know that the emphasis on ethical leadership and accountability came through clearly and was helpful for you. Your feedback is truly motivating. Thank you once again for the encouraging words.
DeleteThis article presents a clear and well-supported discussion on the importance of ethical performance appraisal in modern HRM. The use of recognised authors such as Armstrong and Taylor, Dessler, and Noe et al. adds academic credibility, while the examples from Google, Unilever, and leading Sri Lankan companies effectively demonstrate how ethical principles can be applied in practice. The acknowledgement of challenges such as bias, subjectivity, and cultural factors adds useful critical depth.
ReplyDeleteHowever, the analysis could be further strengthened by offering a slightly deeper evaluation of how cultural dynamics specifically influence appraisal outcomes in Sri Lanka. Overall, this is a concise, relevant, and well-structured piece that successfully highlights why ethics are essential for fair and transparent performance management.
Charith, thank you for your detailed feedback. I appreciate that you noticed the article had strong research and useful real-world examples. I appreciate your recognition of the academic credibility. You have identified the examples from around the world that show fair performance reviews are not just the right thing to do. It is a smart way to run a business. It helps build trust and ensure employees are working to achieve company goals. I appreciate your acknowledgement of the ethical challenges surfacing in performance measurement systems globally. Thank you for your point. I agree that cultural dynamics are important in Sri Lanka. Factors like hierarchy, respect for seniors, and local work habits can affect how performance reviews are conducted. Considering these would make the analysis of ethical performance appraisal more complete.
DeleteViraj your work on ethical performance appraisal is well-structured and insightful, effectively connecting fairness, transparency, and respect to HRM practices. The inclusion of Sri Lankan context and global examples, such as Google and Unilever, enhances the analysis. His discussion of bias, rater subjectivity, and the importance of ethical training reflects a deep understanding of how appraisal systems can uphold employee dignity and reinforce organizational legitimacy. Overall, it is a thoughtful and globally relevant contribution.
DeleteMadhushi, thank you for your thoughtful feedback. I appreciate your recognition that fairness, transparency, and respect are key to ethical performance appraisals. You have noted the examples from both global companies like Google and Unilever, as well as the Sri Lankan context, to show how these practices work in different settings. I’m glad you found the discussion on bias, rater subjectivity, and ethical training useful, as these are important to protect employee dignity and build trust in organisations. Your comments highlight how important it is to include ethics in HR practices for meaningful and fair appraisals.
DeleteThis blog provides a very thoughtful and well-structured look at why ethics in performance appraisal is so important in today’s workplaces. I especially appreciate how you connected fairness and transparency to broader ideas like organisational trust, culture and employee dignity points that are often overlooked when talking about performance evaluations.Your use of international examples such as Google and Unilever shows how ethical appraisal isn’t just a theoretical concept but a working reality in successful global companies. The Sri Lankan perspective was also insightful, especially the recognition that cultural factors like hierarchy and power distance can influence fairness in evaluations. Highlighting organisations such as John Keells Holdings and Dialog Axiata made the discussion more practical and relatable.
ReplyDeleteSaliya, thank you for your comment. I appreciate that you recognised how ethics in performance appraisal plays a crucial role in creating trust, culture, and employee dignity. These aspects are often overlooked in HR discussions. I also value your recognition of international examples like Google and Unilever, which show that ethical appraisal can be successfully applied in real-world settings. Including the Sri Lankan perspective was important to show how cultural factors influence fairness. Factors like hierarchy and power distance affect how people experience fairness at work. This makes the discussion more relevant to local contexts. Highlighting companies like John Keells Holdings and Dialog Axiata helps prove an important point. It shows that ethical performance evaluations are both practical and achievable. They can work across different types of organisations and contexts.
DeleteHi Viraj, I noted your exploration that shows how ethical appraisal systems move beyond rating performance to protecting trust, dignity, and psychological contract fulfilment. What stands out is how your analysis aligns with Organizational Justice Theory, its need for clear criteria, voice, and transparent processes to reduce bias and power-distance effects. The blend of global practices and Sri Lankan realities also highlights an important HRM truth: ethical appraisal is both a cultural and structural responsibility. When organizations integrate evidence-based feedback, rater training, and human oversight in digital systems, performance management becomes a strategic driver of commitment, not a compliance ritual.
ReplyDeleteLaura, thank you for your thoughtful feedback. I appreciate your point about how ethical performance appraisal connects with Organisational Justice Theory. You are absolutely right, especially the need for clear criteria, employee voice, and transparent decision-making. These elements are essential for reducing bias and addressing power-distance concerns, particularly in contexts like Sri Lanka. I also value your observation that ethical appraisal is shaped by both culture and organisational structure. When organisations combine evidence-based feedback, proper rater training, and strong human oversight in digital systems, appraisal processes become more credible and meaningful. As you said, this approach helps transform performance management into a genuine driver of commitment and trust rather than a routine compliance exercise.
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