According to the chapter, what went wrong with the annual performance evaluation?

Enrique had worked very hard the past four years. He had consistently exceeded the job expectations listed in his employee manual and had received exceptional job evaluations for the first three years. His fourth annual performance appraisal was now scheduled in a few minutes, and he was certain that, although circumstances had changed, he would still receive a good evaluation.
Enrique had been hired as a home health program director four years earlier. He knew that the program was dramatically underfunded, and before he accepted the role, his manager, Rosa, promised to increase the funding and provide more organizational support. Enrique trusted Rosa and accepted the position.
The first two years managing the program went well. Rosa did come up with additional resources, although the need for more was still significant.
After two years, however, Rosa quit for a job in another state, and the new manager, Ruben, was brought in from the organization’s operation in another city. Ruben liked to threaten employees and bragged in many manager meetings that he would “get those slackers and troublemakers”
in his group at their annual evaluations. He stated he would make sure they got less than the usual 3 percent merit increase—that would show them what he thought of them!