A well thought out and structured performance management system can be one tool to help organizations achieve business success. Having a strategy and SMART business goals is the best way an organization can achieve business objectives.
Unfortunately, organizations sometimes do not invest the time to develop a performance management structure, process and training.
A performance management structure is the framework used to manage performance. This includes performance management as part of an organization’s business strategy and includes top-down emphasis on performance. As with most areas of business, performance management is only as good as senior management’s commitment to it. The process is the systematic approach to tracking, documenting and communicating performance goals, expectations and employee feedback. This process is the critical step that directly affects employees and can impact employee perception of the process. Training is important for both the managers and the employees. Managers need to have a good understanding of the process and the expectations for their part in documenting performance and communicating to employees on how well they are performing, i.e., employee goal achievement. Training for employees is also important so that employees understand their responsibility in job performance and how they will be assessed during the performance appraisal process based on their goal achievement. When managers don’t have a good understanding of the process and the employees receive inconsistent messages about their performance, the system fails.
So what are the disadvantages of performance feedback when this happens?
Employee Confusion
When employees don’t get the same consistent message communicated to them, they feel confused. This is where a manager having data from documenting performance is critical. This step takes all the rater biases out of the equation and keeps the communication objective.
Low Morale
When employees can’t tie their performance to compensation rewards they become discouraged and low morale can affect all employees.
Low Productivity
When employees have low morale and feel hopeless in their efforts, productivity will decline. This is a scary thing especially when management doesn’t monitor performance and may not even realize the scope and business impact of unproductive employees. This is particularly important when it comes to cost control and overseeing budgetary expenses. Paying salaries for unproductive workers is a sad waste of resources. Finally, managing and coaching employees can be challenging for anyone in a management role. It is time consuming, repetitive and often thankless. However, managers who are allowed to function in a strong performance management system can see the affects of employee development and growth. This is one of the great rewards for effective managers.
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