5. Concerns Associated with the System

The legal concerns associated with the system are relatively reduced and are included in the same category as all the legal concerns faced by companies all over the world. In other words, the system must focus on being objective and fair; otherwise, the company stands the risks of being sued for discrimination and unfair treatment of the staff members.

The objectivity and fairness of the system is not only a matter for legal concerns, but also for ethical ones. If the employees come into contact with information of biased evaluations, they will lose their trust in the entity. This will lead to reduced performances, low employee morale or even high employee turnover rates, generating additional expenditure. Foremost, all these will negatively impact the company's image and perception on the market.

6. Possible Challenges in a Multicultural Workforce

Generally speaking, the appraisal system is objective...
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