Final answer:
Performance management outcomes can include salary decisions, advancement opportunities, impacts on budget planning, and potentially decreased employee engagement if the appraisal process is not managed properly.
Step-by-step explanation:
Potential performance management outcomes include a variety of consequences, positive or negative, that affect both the individual employee and the organization as a whole. Outcomes such as salary decisions, opportunities for advancement, and impacts on budget planning are directly related to the performance appraisal process. While these can be positive outcomes of an effective performance management system, it is also important to acknowledge the possibility of a negative outcome, like decreased employee engagement, particularly if the performance management process is seen as unfair or inadequate.
For example, salary decisions may be influenced by individual performance appraisals, which can guide adjustments in compensation. Advancement, or the prospect of career advancement opportunities, is often contingent on performance reviews, where high-performing individuals may be considered for promotion. Budget planning for departments may incorporate performance outcomes to allocate resources efficiently. However, improper management of the appraisal process could lead to decreased employee engagement, where employees might feel undervalued or unrecognized, impacting their motivation and productivity.