Final Exam - Question #2A (Keith)

I will not attempt to duplicate the excellent response already provided by Tyrone. Although he listed all 10 of the "consequences of an ineffective PA system" from Exhibit 1 (Longenecker & Fink's aticle - Keys to Designing and Running an Effective Performance Appraisal System: Lessons Learned), I believe that items 7 through 10 answer the specific question about "organizational consequences". To me, item 8 (damages the pay for performance linkage) is probably one of the most important factors. The results often lead to employees performing only to minimum standards, theft or increased absenteeism to self-reward, and voluntary turnover of unhappy employees.

Additional (or variations of) consequences also discussed in lecture:
less effective employees; lower achievement of organizational objectives; poor understanding of performance expectations; less identification of employees' training & career needs; employment decisions (promotion, compensation, termination) may not be backed up by documented merits; lack of adequate defense for employment lawsuits; retaliation; less motivated employees.

Again, Tyrone already did an excellent job covering the 3 critical system components from the Longenecker & Fink article as well as the 10 KEY items noted in Exhibit 2. Here are some supplemental issues from the lecture:
knowing what to measure; deciding who should conduct the PA; how often; purpose (improvement or comparison); type of instrument to use; legal and successfully address organizational objectives; job-relatedness and fairness; define all terms; train raters; develop appraisal guidebook; justify all ratings in writing; communicate performance standards; provide feedback for results; develop an effective appeal mechanism to provide a means for calmly venting anger/frustration; understanding of managers and employees; consistency for validity; acceptance of importance; feedback is easier to provide as a deviation from clear expectations.