The disadvantages of performance management system

Written by stephen ward Google
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The disadvantages of performance management system
Team-working dynamics (kay/iStock/Getty Images)

The design and implementation of effective performance management drivers, interventions and stratagems in any organisation is a complex process. It is complex because it inculcates the management of the micro and macro challenges that profoundly determine an organisation’s success. Successful performance management is possible when the steps and requirements in its implementation are accurate. Failure to observe this, numerous nuances may hinder effective performance management. Each level of performance management faces constraints that if not checked, may result in substantial failure and loss to an organisation. This brief explication espouses the demerits of PMS.

Competency requirements

Competent leadership is pertinent for the effective practise of performance management. Managers should balance their business and management skills. They must be able to utilise quantitative and qualitative techniques. Managers should possess thorough skills and knowledge in the application of technology. Performance management is at stake when managers do not portray all of the above-mentioned skills. Professionalism and knowledge of business and human resource science are mandatory. Managers who lack vital techniques and qualities that are critical for performance management may crumble the system because it is complex and multidimensional.


Unlike other diverse management systems, the planning and implementation of a successful performance management system require tireless effort and years of work. It is normal for some initiatives to crumble regardless of the immense effort applied in maintaining them. This may cause the workforce or the management to lose focus. Its complexity requires thorough workforce training to avoid failure of implementation. The entire process of performance management can cost the organisation immensely because of the technology and rewarding incentives. Organisations risk investing in this system and should uphold perseverance because the system is complex and the cost associated with it is high.

Engineering constraints

Traditionally, numerous organisations practised maintenance-based, authoritarian and administrative management. This is an obstacle for the implementation of performance management. Substantial resistance occurs and hampers the effectiveness of performance management initiatives. Managers have the initial task of managing this resistance, which wastes much organisational time. Workers of an organisation with conformist ideologies may pose as a critical problem because performance management requires participation of all workers. Aligning workers to report for regular audits, reviews and appraisals prove difficult especially if they are not responsive to new directives. Intense competition among employees for rewards may cause crowding of workers for the available tasks.

Internal incoherence

The most significant challenge of performance management initiatives is ensuring firm integration of drivers, interventions and stratagems. If an organisation lacks internal coherence, performance management processes suffer. Notably, each of the functions necessary for performance management experience different effects from mechanisms and pressures. Such functions may end up conflicting with themselves and colliding with human resource functions. If the quality of integration and internal coherence are sub-standard or frail, performance management systems usually produce inaccurate results. Limited coherence also discourages integration among employees, a factor that causes conflicts and poor operations that significantly affect the organisation's productivity and affluence.

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