Negative effect of merit system

1.Producing results in a short period of time was regarded as important. On the other hand important subject that should be worked on in a long term, difficult subjects and subject that is not outstanding but important became negligent.

2.In the aspect of personnel development, training of subordinates and younger employees came to be kept away.

3.As degree of difficulty of the objectives, generosity and severeness of evaluation were uneven in evaluation, the distrust of evaluation was born and reduced the motivation of employees.

4.As personal result is regarded as important, communication became thin and came to affect the cooperation with the neighborhood, mutual understanding.

Reflecting on negative effects of merit system, now Japanese company try to adopt new personnel evaluation system to evaluate by total in consideration of following three points.

1. Work : Do what kind of work

2. Role : A prospective work, for example achievement of the sales target, contribution of team work, education of subordinates, improvement and suggestion for the problems in the work

3. Result : Achievement degree for the prospective role


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