By Leon Gettler

Staff writer, Smart Company
Wednesday, 10 June 2009

Traditionally, performance appraisals have been regarded as critical for managing careers and keeping employees in line with business objectives. Now with the Government's unfair dismissal changes dismantling WorkChoices, the performance appraisal can also be a critical tool in protecting your business from unfair dismissal claims.

For time-strapped managers and business owners, that means more work. But as Julian Lippi, director of the MBA at Swinburne's Australian Graduate School of Entrepreneurship says, it's an important investment, both for employees and the company.

"If you don't do the work, you have de-motivated staff. You have the old ones in the corner who are angry, their productivity is down and they pollute the minds of any new hires you have got,'' Lippi says.

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