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Issues with Implementing a Performance Management System

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For IQ Dynamics By Lim Say Ping

The successful implementation of a performance appraisal process and system can be a game-changer for any company. It has the potential to drive superior company performance through the maximizing of team and individual performances and their potential. Additionally, it can help attract, retain, and develop talented individuals within the organization. However, amid the promise of these benefits, several challenges or issues often arise during the implementation of a performance management system.

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

  • Overwhelming and Time-Consuming: The management team and employees find it overwhelming, and time-consuming and do not see the benefit in implementing of performance appraisal system.
  • Misuse as a Ranking Tool: By implementing of performance appraisal system, the performance 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.
    • Lack of Fairness: Instead of being a motivating and development process, it is often turned into evaluation and judgment sessions. Sometimes it is being used as a tool to sideline or terminate the service of the employee unfairly.
  • Focus on Procedural Stops: Too much time is 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.

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As such, is there anything that can be done about these issues? Observing, some of the more well-known multinational companies who have made 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 implementing of performance appraisal system continues to 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 the performance appraisal 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 can assist your organization to be better, and contact us here for any inquiries.


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