Taylor P J, Pierce J L
Public Personnel Management, (USA), Autumn 1999 Vol 28 No 3
Start page: 423. No of pages: 30
Reports the results of a longitudinal evaluation of a performance management system, introduced into a New Zealand regional public sector organization, which studied the effects of performance planning/goal-setting and appraisals/merit pay on employee attitudes and effort. Examines the impact that the goal-setting and performance appraisals had on high-performing and low-performing employees’ attitudes; assesses the impact that disappointing appraisal ratings had on attitudes; investigates how employees receiving poorer-than-expected rating explained the rating; and evaluates the employees’ attitudes to the performance management system overall. Concludes that the study casts doubt on the effectiveness of performance management systems for increasing employee effort and improving employee work-related attitudes – the system having a poor effect on organizational commitment and attitudes to supervision, particularly among the higher performing employees. Suggests that the goal-setting component of the scheme had the most positive impact on employee attitudes, but points out that the organization had had no system for clarifying performance expectations before the introduction of the new performance management system.
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