Effects of introducing a performance management system on employees' subsequent attitudes and effort

A longitudinal evaluation was conducted on the effects of introducing a per formance management system (PMS), which featured merit-based bonus pay, on subsequent employee attitudes and self-reported work effort in a small, gov ernment organization. Additionally, employees' targets of blame for receivi ng lower-than-expected ratings were explored. A significant change in emplo yees' organizational commitment occurred over the time that the PMS was imp lemented, with a substantial increase occurring within the performance plan ning/goal-setting phase, followed by a slight decay over the following year , but still ending higher than the pre-PMS baseline level. Substantial incr eases in ratings of satisfaction and cooperation with. one's supervisor wer e found with the introduction of the PMS for low performers (particularly f ollowing the performance planning/goal-setting phase). In contrast, however , high performers had high base-line levels of these attitudes toward super vision, followed by substantial drops immediately after receiving appraisal and bonus pay distributions. As anticipated, most participants in this stu dy had expected a performance rating higher than they actually received, an d most of these individuals made external attributions for the rating discr epancy, blaming either their supervisor the organization, or the PMS itself . However, neither having received a lower-than-expected appraisal rating n or having made external attributions for a lower-than-expected rating were related to changes in attitudes or self-reported effort.