Conclusion - Threats of Poorly Implemented PfM

Performance Management (PfM) is a complicated process which has many steps involving various stakeholders in all level of the organizations. With this said, there are tendencies of complications and threats could occur in an organization when implemented poorly. So following are some of the threats found from Aguinis, (2009); (Brown & Benson, 2005); (Gabris & Ihrke, (2001) by poor PfM implementation.

1. High Turnover – If PfM is seen as an unjust process, then this could lead to the employee withdrawing physically (quitting or absenteeism) or psychologically (minimizing their effort till another job opening) from the given task.

2. Using misleading information – If the PfM implemented doesn’t have a standard system in place then there can be many occasions where false information regarding employee performance can be fabricated.

3. Lowered self-esteem- If the feedback in a PfM process provided prove to be inappropriate or inaccurate then they can damage the employee confidence. And often leads to employee resentment.

4. Resource wastage- poorly implemented PfM will have poor the facilities, money, time and effort management. This could also lead to the management shying away from PfM process due to the wastage.

5. Jeopardize employee relationships – the interrelationship damaged permanently due to the deficient systems.

6. Lack of Motivation to perform – When the appraisals are not translated into meaning full tangibles (monetary rewards) or tangibles (recognition) for the employee the motivation factor decreases.

7. Jon burnouts and dissatisfaction – when the evaluation part in the PfM is seen unjust, this could lead to high job burnouts and dissatisfaction.

8. Increased chances of legal action – Unfair performance appraisals can turn into high cost lawsuits for the organizations.

9. Rise of biased behaviour – personal favours, biases can replace the standard when PfM process are poorly implemented.

10. Confused rating systems – due to poor communication the employees may not know how their efforts are transformed into rewards.

Above are the main threats organization can incur by a poor PfM, and were briefly discussed in a previous post.

PfM is an integrated system. And the stakeholders and components in all levels should go hand-hand in a continuous interaction to achieve an effective PfM. Understanding the essence of PfM from inception to implantation can greatly help an HR professional to channel his/her effort to harness utilize the human capitol in an organization. Thus ensuring the maximum of Human Resources usage, after all the HR is the science of harnessing the human capital in an organization.



References

Aguinis, H., (2009). Performance management. Upper Saddle River, NJ: Pearson Prentice Hall.

Brown, M., & Benson, J. (2005). Managing to overload? Work overload and performance appraisal processes. Group & Organization Management, 30(1), pp 99–124.

Gabris, G. T., & Ihrke, D. M. (2001). Does performance appraisal contribute to heightened levels of employee burnout? The results of one study. Public Personnel Management, 30(1), pp 157–172.