Question

What would be some potential issues with not having a formal performance management system in place? How might this have a negative – or positive – impact on the organisation and its staff?

Consider the potential implications of performance management for staff, for leaders and for business outcomes

Answer 1

Performance Management plays an important role in an organization because based on that the employees are motivated to do better for themselves and the organization, generally organizations today possess quite a well defined performance management system that helps them conduct performance evaluation and appraisals for an employee. Absence of a formal performance management system may have a negative impact on the employees because they may feel that the appraisals are not transparent and there is unethical considerations in the process which is affecting them. I believe that this may affect the performance level and motivation of employees in the process and the organization should take care of such issues because this is something that affects organization to quite some extent.

There is no doubt in the fact that performance management is an important aspect in the process of running an organization and any biased step may actual affect the performance and also efficiency of the organization along with the importance of their functioning as well..