Final answer:
True. An organization's exposure to discrimination litigation is increased if the performance appraisal system generates feelings of unfairness.
Step-by-step explanation:
True. An organization's exposure to discrimination litigation is increased if the performance appraisal system generates feelings of unfairness. Research has shown that when employees perceive the performance appraisal system as unfair or biased, it can lead to negative outcomes such as decreased job satisfaction, lower organizational commitment, and increased turnover intentions. This can create legal risks for the organization as employees may perceive themselves as victims of discrimination and file lawsuits.