Discuss The Advantages And Disadvantages Of Performance Management System
Disadvantages of a Poorly Implemented Performance Management System
A performance management system in any organization is an extremely crucial HR function that drives and directs all decision-making processes in the organization and determines the effectiveness of individual and organizational performances. A strong performance management system can play a key role in transforming a good organization to a great one. But on the contrary, a poorly implemented performance management system (PMS) can create several issues and over time can cripple the functioning of the organization. We’ll analyse the several adverse consequences that an organization is likely to face when it does not have a robust PMS in place.
If a PMS is not functioning as it is supposed to function, it will fail to serve one of its
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- The PMS will be perceived as an unjust and unfair one by the employees. If an employee perceives another employee receiving same level of reward in spite of performing at a comparatively lower level, he will feel resentment towards this disparity and unequal treatment of employees by the organization.
- Employees may feel resentment towards management for not recognizing their performance or for showing lack of parity in rewarding others. They may also feel resentment towards other employees who they perceive as the recipients of undeserved rewards. This resentment is detrimental for the desired healthy relationships amongst individuals in the organization.
- Above all, the organization can face an increased attrition rate. Dissatisfied employees can start looking for other opportunities. These employees will either quit the current organization or refrain from putting adequate efforts into their work until they get the opportunity to quit the
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