Disadvantages/ Dangers of Poorly Implemented Performance Management Systems
Posted by Ripon Abu Hasnat on Saturday, June 13, 2015 | 0 comments
Some of the
negative consequences associated with low-quality and poorly implemented
systems. These are discussed below:
1. Employees
may quit due to results.
If the
process is not seen as fair, employees may become upset and leave the
organization. They can leave physically (i.e., quit) or withdraw
psychologically (i.e., minimize their effort until they are able to find a job
elsewhere).
2. False
or misleading information may be used.
If a
standardized system is not in place, there are multiple opportunities for
fabricating information about an employee’s performance.
3. Self-esteem
may be lowered.
Self-esteem
may be lowered if feedback is provided in an inappropriate and inaccurate way.
This, in turn, can create employee resentment.
4. Time
and money are wasted.
Performance
management systems cost money and quite a bit of time. These resources are
wasted when systems are poorly designed and implemented.
5. Relationships
are damaged.
As a
consequence of a deficient system, the relationships among the individuals
involved may be damaged, often permanently.
6. Motivation
to perform is decreased.
Motivation
may be lowered for many reasons, including the feeling that superior
performance is not translated into meaningful tangible rewards (e.g., pay
increase) or intangible rewards (e.g., personal recognition).
7. Employees suffer
from job burnout and job dissatisfaction.
When the performance
assessment instrument is not seen as valid, and the system is not perceived as
fair, employees are likely to feel increased levels of job burnout and job
dissatisfaction. As a consequence, employees are likely to become increasingly
irritated.6
8. There is increased
risk of litigation.
Expensive lawsuits may
be filed by individuals who feel they have been appraised unfairly.
9. Unjustified
demands are made upon managers’ resources.
Poorly implemented
systems do not provide the benefits that well-implemented systems provide, yet
they still take up managers’ time. Such systems will be resisted because of
competing obligations and allocation of resources (e.g., time). Worse, managers
may simply choose to avoid the system altogether.
10. Standards and
ratings vary and are unfair.
Both standards and
individual ratings may vary across and within units, and may also be unfair.
11. Biases can
replace standards.
Personal values, biases
and relationships are likely to replace organizational standards.
12. Mystery surrounds
how ratings were derived.
Because of poor
communication, employees may not know how their ratings are generated or how
the ratings are translated into rewards.
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