Editing Performance appraisal (section)

===Hidden cost of control===
While performance appraisals are fundamental in the assessment of employees, frequent testing can result in the deterioration of employee performance, thus impacting overall business operations. The agent's perception of these 'control' devices are that they signal mistrust to the individual and reduce working autonomy. If these management practices are employed without consideration of the emotional response to said devices, then the agent's willingness to engage in the company's ambitions are greatly reduced as suggested in empirical studies.<ref>{{cite journal |last1=Falk |first1=Armin |last2=Kosfeld |first2=Michael |title=The Hidden Costs of Control |journal=American Economic Review |date=November 2006 |volume=96 |issue=5 |pages=1611–1630 |doi=10.1257/aer.96.5.1611 |url=https://www.zora.uzh.ch/id/eprint/2251/9/Falk_Am_Econ_Rev_2006.pdf }}</ref>