Question

Performance Management System

Discuss your organization’s performance management system (PMS) or the PMS of an organization with which you are familiar. What are its advantages and disadvantages, and what might be done to improve it?

Answer 1

Advantages-

1. Because of performance management system there will be consistency in employee work.

2. Rewarding staff for their performance will motivate them do perform even better.

3. Those who are underperforming can be either eliminated or their performance can be improved.

4. PMS will help in keeping records of employee performance.

5. Boosts employee as well as organizational performance.

6. Helps an individual for his/her successful career planning.

Disadvantages-

1. Setting up PM system and evaluating performance of employee is lengthy and complex process.

2. PMS may result in discouragement among employees.

3. Performance evaluation may suffer from biases and thus PMS can backfire.

4. If conditions and standards are not set properly PMS will be of no use.

5. PMS might lead to increased internal competiton which can turn out ugly.

6. Managers who are doing evaluation might spend more time and resources in evaluating employess than other important work.

Ways to improve Performance Management System-

1. Aligning employees towards organizational goals.

2. Setting up Key Performance indicators (KPIs) to evaluate employee and PM system.

3. Use of technology like data analytics to save precious time.

4. Set clear objectives and highlight key results.

5. Develop a feedback system to understand employee views on evaluation process.