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Question: You are Walter Michaels and have just received some disturbing feedback. You are the director of human resources for Maxi Vision Inc., a medium-size window and glass door manufacturer. You recently initiated a 360-degree performance appraisal system for all middle and upper managers at Maxi Vision, including yourself, but excluding the most senior executives and the top management team. You were eagerly awaiting the feedback you would receive from the managers who report to you; you had recently implemented several important initiatives that affected them and their subordinates, including a complete overhaul of the organization's performance appraisal system. While the managers who report to you were evaluated based on 360-degree appraisals, their subordinates were evaluated using a 20-question BARS scale you recently created that focuses on behaviors.

Conducted annually, appraisals are an important input into pay raise and bonus decisions. You were so convinced that the new performance appraisal procedures were highly effective that you hoped your own subordinates would mention them in their feedback to you. And boy did they! You were amazed to learn that the managers and their subordinates thought the new BARS scales were unfair, inappropriate, and a waste of time. In fact, the managers' feedback to you was that their own performance was suffering, based on the 360-degree appraisals they received, because their subordinates hated the new appraisal system and partially blamed their bosses, who were part of management. Some managers even admitted giving all their subordinates approximately the same scores on the scales so their pay raises and bonuses would not be affected by their performance appraisals. You couldn't believe your eyes when you read these comments. You spent so much time developing what you thought was the ideal rating scale for this group of employees. Evidently, for some unknown reason, they wouldn't give it a chance. Your own supervisor is aware of these complaints and said that it was a top priority for you to fix "this mess" (with the implication that you were responsible for creating it). What are you going to do?

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