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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 Increased turnover Use of false or misleading information Lowered self-esteem Wasted time and money Damaged relationships 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 Emerging biases Unclear ratings system ...
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