Negative Impact of performance management.
There can be advantages and disadvantages of performance management. “Disadvantages performance management systems are seen as a cost source that not only increases productivity but also improves productivity if it does not improve the performance of the organization and does not improve the performance of the organization. It has also caused some damage” (Rostam, A., 2019, p.2).
Based on the industry-level
analysis by Martinez (2005), and Aguinis (2012) mentioned the negative impacts
of performance management on employees and employers.
- Time-consuming – Managers have to spend a lot of time identifying and providing opinions to build employee skills.
- Demands considerable financial investment – Organizations have to spend money to provide the required training to the employees and sometimes investment become waist.
- Bureaucratic – Too many measures make PMS bureaucratic.
- Over-complicated measures – Difficult to understand and manage.
- Misleading prioritization – ‘red’ measures can divert attention from the most critical measures.
- Mechanistic – can discourage entrepreneurial intuition.
- Monotonous. Managers have to continuously refresh the way in which performance is reviewed.
- Employees can resign based on results – if an employee performs well and is assessed negatively.
- Employee morale drops – if they are treated negatively that can impact the outcome.
- Compliance risks – Employees can take legal action against poor performance management.
Poor performance management systems can damage organizational performance and reputation. In order to better design a good performance management system by allocating a budget and time. A good performance management system is long-term income to get rewards in the future.
References.
- Martinez, V., (2005) What is the value of using performance management systems?
Rostam, A., (2019). Advantages and disadvantages of performance management.
Aguninis, H., (2012) Performance management. 3rd edition. Argentine: Person.
