Possible Illegal Discrimination at Tractors, Inc. , Tractor Inc, is a family own
ID: 348291 • Letter: P
Question
Possible Illegal Discrimination at Tractors, Inc. , Tractor Inc, is a family owned heavy equipment , ie, tractors, paving , the company tht has been in business for more than 25 years. over the past , several years the company has experienced rapid growth, increasing from 100 employees to 500.tractors Inc. is begining to realize that it needs to change or enhance its current performance management system. the company still uses the performance management systems it implemented more than 10 years ago
consider the current performance system is conducted yearly, then the supervisor schedule a former meeting with employee to discuss the appraisal.dureing the meeting , the manager reviews the rating with the employee. including any comment that the manager may have. discuss opportunities for improvement and development.
in recent months the company received a complaint from a female employee that she did not get input about her appraisal, managers do not complete the appraisal in a timely manner. another two female employee complained that they had passed up for promotion. the rating of I.e. sue is that she attend her hours only and if she could handle her kids extra acitity by someone else she can stay longer hours at work, this made sue feels that only because men at work have home moms or single with less knowledge in her department get promoted.
. 1-Consider Tractors, Inc.’s performance management system in light of what we have discussed as an ideal system and how a company can ensure that its system is legally sound. As the new human resources manager, you have been asked to identify those areas of the current performance management system that could face a legal challenge. Please develop a one-page summation, identifying the potentially illegal aspects of the current system and your suggestions for making the current system more legally sound.
Explanation / Answer
The current performance management system of Tractors Inc. is quite outdated and it is plagued with following problems that can lend them into legal trouble:
1. Appraisal Structure and discussion - As per case, I doubt if Tractors Inc is having a proper formal discussion with employees and keeping a record of all the discussions. This documentation is highly important to prove any charges wrong that arise out of a lawsuit citing discrimination in performance evaluation. Once an appraisal is done it is important to have a formal discussion and close.
2. Discrimination in Company - Upon reading the case, most of the complaints are raised by female employees. It is highly possible that Tractors Inc employees are gender-biased in appraisals or while nominating for promotion. All this is against Equal Employment opportunity act. This needs to be strictly looked into as this could lead to a lawsuit in millions.
3. Inclusive workplace - Tractors Inc. even seems to discriminate on the basis of family commitments. In the case of Sue, it seems that even though she has more knowledge she is being rewarded with less compared to men. This seems to be a hostile work environment for working moms and another potential opening for a legal case.
Steps to improve appraisal system:
The company needs a complete revamp of the system. First and foremost, they need to train all employees regarding the anti-discriminatory policy of the company. No manager should discriminate in appraisal on the basis of age, color, gender, race or origin. Also, a person's work is to be judged and no regards to personal commitments should be given. Secondly, the company needs to define the parameters for rating and define a definite timeline for appraisal cycle as shared in bullet points below. This needs to be strictly followed at each level.
Appraisal month
Thirdly, the company must have a yearly appraisal broken down into two cycles of 6 months each. In the first part, employee's current performance against parameters is discussed, basically their achievement tracking with respect to goals. This gives employees an opportunity to improve performance in the second half to achieve their goals.