Creating a sense of urgency at work isn't always a bad thing. However, it becomes a bad thing when people in leadership roles wield it like a sword and use it to the point that it now becomes counter-productive. When applied in strong collaboration to speed up a project (think Covid-19 vaccine), it can have a beneficial outcome. However, when everything is served up as a priority with merits as urgent as the tasks before it, people will become confused about prioritizing and completing a task successfully. This scenario will bring about lower production and double the mistakes.
When looking at this from a mental well-being perspective, it can cause burnout, disengagement, lower production output, and ultimately a total disconnect between people and production.