Question

A bank introduces KPIs for relationship managers. Employees soon begin focusing almost exclusively on activities that are measured, while important but difficult-to-measure activities such as mentoring junior employees and resolving complex customer issues decline. Which HR phenomenon is best illustrated?

Q: Answer-A bank introduces KPIs for relationship managers. Employees soon begin focusing almost exclusively o...

The performance system measures only certain aspects of the employees contribution. If important dimensions are excluded, the criterion becomes deficient. At the same time, employees adapt their behaviour to maximise measured outcomes. This illustrates an important principle Employees often respond to what organisations measure and reward, not necessarily to what organisations merely say is important. Hence, B.