Issue with Implementation of a Performance Management System

For iQDynamics By Lim Say Ping

The amount of added advantage a company attains from a properly implemented performance appraisal process and system is immense. This performance appraisal process and system can be a key driver of greater company performance through the maximizing of team and individual performances and their potential. It can also help to attract, retain and develop people.

However, there are several issues or disadvantages during the process of implementing a performance appraisal system that are frequently highlighted, here are some of the common ones:

  • The management team and employees find it overwhelming, time-consuming and do not see the benefit in implementing a performance appraisal system.
  • The performance appraisal process is often misused as a ranking tool where people are just given a digit or score and not as a people development or motivator tool, resulting in occasional unfair practices.
    • Instead of being a motivating and development process, it is often turned into evaluation and judgement sessions. Sometimes it is being used as tool to sideline or terminate the service of the employee in an unfair manner.
  • Too much time spent on the whole appraisal process including moderation and completing the procedural steps. Thus, the benefits are not derived as there is little time or effort spent on coaching and development for employees.

As such, is there anything that can be done about these issues? Observing, some of the more well-known multinational companies who have done some major changes with the processes, yes. In general, the traditional annual reviews and performance ranking tool was modified to be more people-centric and focused more on the coaching and development aspect of the appraisal process. Their modified version of the performance appraisal process continues function as should a general performance appraisal management process and system but with added flexibility and effectiveness.


Watch out for our upcoming e-book on how to properly implement a performance management system that will greatly assist with your appraisal process and provide you with solutions to handle the issues mentioned above.

Meanwhile, check out our other available whitepapers, how our very own HRiQ system is able to assist your organization to be better and contact us here for any enquiries.


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