Performance management systems that are fair and acceptable to employees are also legally sound. A basic principle that guides the design of a fair system is that procedures are standardized and that the same procedures are used with all employees. This is also the basic principle that underlies the implementation of performance management systems that are legally sound.

Legislation and court cases in the United States and many other countries around the world indicate that discriminatory effects of a performance management system can be minimized by applying a “golden rule.” Treat everyone in exactly the same way, regardless of sex, ethnicity, and other demographic characteristics that are unrelated to job performance.

This golden rule also applies to international employers—multinational organizations that implement their performance management systems across countries around the world. In spite of an increased global awareness of legal issues regarding performance management, the golden rule is not applied as often as it should be.