Question: APPRAISE THIS!BackgroundOn November 1 3 , 1 9 9 0 , Scott Crest, a powerhouse employee in a full service hospital, filed a grievance against

APPRAISE THIS!BackgroundOn November 13,1990, Scott Crest, a powerhouse employee in a full service hospital, filed a grievance against the hospital for failing and refusing to grant his a wage increase because of his union activities. Tom Smith became Vice President of Business Development/Facilities and took over management of the hospital's maintenance and powerhouse employees in August 1989. In an effort to improve the quantity and quality of work, Smith had Jeff Hillman, Crest's immediate supervisor, develop new production standards and evaluation procedures. The standards and procedures were completed in July 1990. In August 1990, Hillman prepared an annual evaluation of Crest using the old standards. Hillman rated Crest as "normally meets expectations", and recommended him for a 4 percent raise. Smith reviewed the evaluation and directed Hillman to redo the evaluation using the new standards. The result of the revised evaluation was that Crest, the first employee to be evaluated under the new system, received an unsatisfactory rating and was not recommended for a wage increase. Crest's PositionCrest charges that the reason for the denial of a wage increase was based on the fact that he, and a fellow employee, sought out the Union and initiated a campaign to organize the hospital maintenance and powerhouse employees. According to Crest, Hillman told him that he thought the (poor) evaluation was because of the union activities.The Hospital's PositionThe hospital defends its position, stating the evaluation had no connection to the union as Smith had no knowledge of Crest's union activities. The issue is that Hillman was initially afraid that management would not support a lower rating until reminded by Smith that the new evaluation was his (Smith's) idea and he would support Hillman. The fact that Crest was the first employee to be evaluated under the new system was simply a coincidence.APPRAISE THIS1. How much notice should be given before a company uses a new performance evaluation?2. Do you think the company is obligation to the 4% raise?3. Explain. Decide the case and explain your decision.

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