On 8th July 2019 (1-2pm) Prof. Dr. Christian Grund, professor of Human Resource Management and Personnel Economics at RWTH Aachen University, will give a presentation about “Works Councils and Performance Appraisals” in Q4.245. Afterwards, Mr. Grund will be available for questions and discussions. His presentation is part of: https://wiwi.uni-paderborn.de/dep1/me/research/discussing-research/seam/
We analyze the role of works councils for the use of performance appraisals (PA) based on data of two large German representative data sets. We distinguish the incidence of performance appraisal systems as intended by the firm and the actual implementation on the level of the individual employee. We find that works councils rather promote than restrict PA. Employees working in establishments with a works council are more likely to face a formal performance appraisal procedure. Works councils also act as a transmission institution for the actual use of the existing PA system – that is among the firms that claim to implement performance appraisals for all their employees, the likelihood that employees actually have regular appraisals is substantially larger when works councils are in place. The role of works councils to certain monetary consequences of PA for employees is ambivalent: The existence of works councils is positively related to PA systems which affects bonus payments, but negatively linked to PA systems with consequences for monthly gross wage or future wage raises.