Performance measurement, evaluation, and reward: The role and impact of subjectivity

Abstract

Performance measurement and reward systems (PMRSs) are among the most important processes in an organisation’s toolkit. Effective design and use of performance measurement and evaluation will motivate employees to strive to attain the firm’s goals while ineffective systems can lead to a wide range of problems. At its worst, a PMRS will cause employees to work against the organisation’s goals for their own interests – and may even reward them for doing so