To address the limitations of objective performance measurement, incentive systems often include supervisor discretion. Instead of evaluating an individual’s performance solely on quantifiable outputs relative to set targets, a supervisor assesses employee actions and overall outcomes to subjectively determine if performance expectations were met. Such assessments entail judgments based on personal impressions, feelings and opinions, rather than facts. Therefore, the accuracy of subjective performance assessments cannot be validated by a third party.
Forms of Supervisor Discretion
The most common way supervisors apply discretion is by assessing an employee’s performance in job dimensions that can only be determined ...
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