At a manufacturing company in south suburban Chicago, one policy stated that each manager and employee must be appraised at one-year intervals.

At the same time, the company conducts a review of the person’s wages or salary, usually giving at least a small raise. In recent years, like many manufacturers, this company has become concerned about reducing costs.

The policy regarding performance appraisals has been modified: Managers’ appraisals now must be conducted at least a year after the manager’s salary was last reviewed. One supervisor was reviewed in December of one year, then in February

(14 months later), and then in May of the third year.

a. What reasons do you think the supervisor’s manager had for delaying the performance appraisals so that they were more than a year apart?

b. What effects do you think the delays had on the supervisor?