Unformatted text preview: 10. 11. 12. Chapter 1 0 Performance Management and Reward Systems in Context . Employee burnout and job dissatisfaction. When the performance assessment instrument is not seen as valid and the system is not perceived as fair, employees
are likely to feel increased levels of job burnout and job dissatisfaction. As a con-
sequence, employees are likely to become increasingly irritated.22 . Increased risk of Iitiga tion. Expensive lawsuits may be filed by individuals who feel they have been appraised unfairly. . Unjustified demands on managers’ and employees’ resources. Poorly imple- mented systems do not provide the beneﬁts provided by well-implemented
systems, yet they take up managers' and employees' time. Such systems will be
resisted because of competing obligations and allocation of resources (e.g., time).
What is sometimes worse, managers may simply choose to avoid the system
altogether, and employees may feel increased levels of overload.23 Varying and unfair standards and ratings. Both standards and individual
ratings may vary across and within units and be unfair. Emerging biases. Personal values, biases, and relationships are likely to replace
organizational standards. Unclear ratings system. Because of poor communication, employees may not
know how their ratings are generated and howr the ratings are translated into
rewards. Table 1.2 summarizes the list of disadvantages and negative consequences resulting from the careless design and implementation of a performance management system. Once
again, consider Sally's organization What are some of the consequences of the system
implemented by her company? [et’s consider each of the consequences listed in Table 1.2.
For example, is it likely that the performance information used is false and misleading?
How about the risk of litigation? How about the time and money invested in collecting,
compiling, and reporting the data? Unfortunately, an analysis of Sally’s situation, taken
with the positive and negative consequences listed in Tables 1.1 and 12, leads to the con-
clusion that this particular system is more likely to do harm than good. Now think about Disadvantageleangers of Poorly Implemented
Performance Management Systems
Use of false or misleading information
Wasted time and money
Decreased motivation to perform
Employee job burnout and job dissatisfaction
Increased risk of litigation
Unjustified demands on managers' and employees’ resources
Varying and unfair standards and ratings
Unclear ratings system ...
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- Winter '17
- Performance Management