Employee well-being: Can performance management systems help? Yes, but they sure can hurt too!

Abstract

Employee well-being is notably influenced by an employee’s work environment and experiences at work. These individual work experiences can be enhanced or ultimately hindered by an organization’s performance management. In this chapter, we provide a comprehensive look at the implementation of performance management systems and the ensuing well-being implications or consequences for individuals and the organization. First, we conceptualize and apply an employee well-being framework to the development of performance management systems in organizations. Then, we provide several workplace scenarios that depict how performance management systems may influence employee well-being in a variety of ways. Each scenario is considered in light of the performance management system, a discussion of possible implications for employee well-being, and practical recommendations for the development of more ethical and effective practices. Finally, we conclude this chapter with suggestions for the consideration of employee well-being in the development and implementation of performance management systems.