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The theory of performance feedback views decision makers as problem solvers seeking to improve performance. By specifying how and when decision makers may instead seek to enhance their self-image by assessing performance as satisfactory, the model presented in this article specifies boundaries on performance feedback theory's critical prediction that low performance induces increased search, change, and risk taking, and it suggests one reason why decision makers sometimes fail to learn from their mistakes. Do performance management systems measure the right things? How can these systems tie performance that is more consistent with long- range versus short-term issues?
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