Discuss the importance of truth-telling in the performance appraisal process.Identify and analyze the ethical duties of managers in performance appraisal and compensation.

PERFORMANCE APPRAISAL
AND COMPENSATION
Learning Objectives
Upon completing this chapter, the reader should be able to:
x Identify and discuss several different approaches to compensation in current
use in business, and analyze the fairness of each approach
x Discuss the merits and di”culties of performance-based compensation.
x Discuss the importance of truth-telling in the performance appraisal process.
x Identify and analyze the ethical duties of managers in performance appraisal
and compensation.
x Apply all three major approaches to ethics to the topic of executive compensation.