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Performance management

meaningful way (continuous, timeous feedback can Substandard PM software
result in positive perceptions as well as perceptions Companies have emphasised the increasing
of fairness for employees which leads to greater need to upgrade their software in search of more
motivation and dedication to the company), as well as sophisticated software.
increasing retention (a mutual understanding between
the employee and management organisation means
that management can cater towards employees with Dissatisfaction of the PM system as a
regard to what they value most, resulting in higher whole by all the agents involved
retention rates). While nearly 90% of organisations have implemented
a PM system, only 18% of these organisations
But if PM has so many benefits, why are satisfied with them. Dissatisfaction with the
are some organisations against it? system lies from the employees to the managers,
Today, PM is a root of discontent at some who generally don’t like giving feedback, especially
organisations. Studies show that some organisations negative or adverse feedback.
believe that their PM systems have either no effect or
a negative effect on the performance of the company. Who has access to information and
Why is this so? The simple answer is: Performance who holds responsibility?
management is not being implemented correctly.
Correct implementation of PM can result in a great Generally, the unspoken rule dictates that leaders
positive impact upon performance of both the have information access and hold responsibility.
employee and the organisation in its entirety. Incorrect Times have changed and employees control their
implementation can have an adverse effect. There are own performance evaluations as well as their career
several unanimous problems among organisations paths and development.
that are affecting PM systems. Organisations tend to focus on process rather than
focusing on learning and development.
What are the problems affecting PM Management has the tendency to focus on the
systems in organisations today? process and the performance rating which drives the
When companies are struggling on the front of their focus away from learning.
PM systems, generally, the problems they should The following table outlines the factors that are
consider are the following: blocking the road to successful PM:

Factors Affecting Performance
Management Systems In Raking Order

The inability of leadership to provide a mentor role and have discussions directed at
individual and organisational goals on a rolling basis.
The inability of leadership to differentiate performance levels on a robust basis and
provide above average, average and below average performers with appropriate and
constructive feedback.
Discussions on goal-setting and reviewing performance that occur once or twice a
year as opposed to occurring on a continuous basis.
The lack of skills of leadership pertaining to goal-setting or reviewing performance.
Over-emphasising performance and ignoring development.
Finding a conducive balance between setting goals and targets and the behaviours
needed to achieve them.
The PM process is not supported or modelled by senior management, especially the
CEO.
Individual performance is not linked to remuneration.
PM is not used to align goals within every level of the organisation.
PM software has not been used effectively and eliminates purposeful goal-setting and
performance review discussions between leadership and employees.

HR FUTURE · JUNE 2018 27