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Case
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Reference no. 9-491-005
Published by: Harvard Business Publishing
Originally published in: 1990
Version: 20 November 1991

Abstract

Merck & Co, Inc, a major pharmaceutical company, is in the process of reviewing and evaluating its personnel policies and practices. Employee interviews revealed that rewards for excellent performance were not adequate: outstanding performers received salary increases that were, in many cases, only marginally better than those given to average performers. In many cases, outstanding performance was not even clearly identified. The objective is to have students wrestle with a common malady of performance appraisal systems: the tendency of managers to assign uniform ratings to employees regardless of performance. Alternative appraisal systems should be suggested and discussed.
Location:
Industry:
Size:
USD6 billion sales, 35,000 employees
Other setting(s):
1986-1989

About

Abstract

Merck & Co, Inc, a major pharmaceutical company, is in the process of reviewing and evaluating its personnel policies and practices. Employee interviews revealed that rewards for excellent performance were not adequate: outstanding performers received salary increases that were, in many cases, only marginally better than those given to average performers. In many cases, outstanding performance was not even clearly identified. The objective is to have students wrestle with a common malady of performance appraisal systems: the tendency of managers to assign uniform ratings to employees regardless of performance. Alternative appraisal systems should be suggested and discussed.

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Location:
Industry:
Size:
USD6 billion sales, 35,000 employees
Other setting(s):
1986-1989

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