Maturity Curves for Professional with Verying Degrees of Performance
raises can be given. MBO is particularly common among administrative and managerial employees because their productivity is not objectively measurable. As a result, merit raises are subject to many of the biases discussed in Chapter 12. When raises are distorted by biases, meritorious performance goes unrewarded. Furthermore, employees are sent incorrect messages about . what is expected of them. For example, if a company values quality but gives merit raises to managers who exceed their production goals regardless of quality, other managers soon realize that quality is not valued as highly as quantity is. When merit raises are severely limited, sO}lle managers give an equal raise to everyone, which really does not reward merit. However, if a manager gives meaningful raises to only a few of the best performers, dissatisfaction among those who received no raises may become a serious morale problem.