Goals of Performance Management System and main failures

Many organizations around the globe use sophisticated performance management systems to monitor and evaluate the performance of their employees. These performance systems can be really sophisticated, but they fail in the most important goal – motivating employees to reach higher performance levels and keep developing their skills and competencies.

The overall goals of performance management systems are:

• Motivate employees for future development;
• Help employees to identify gaps in their skills and competencies;
• To provide feed back on the evaluated period and plan the action plan to improve and further develop skills and competencies;

Aiming these goals of Performance Management System is not easy. It is much easier to develop very complex system, which is difficult to use and it is almost a mission impossible to explain the system to individual employees.

As the managers and employees do not understand to the complicated logics and rules behind the system, they start to learn the “desired” behavior not to complicate their professional life. The managers tend to provide employees with a very formal performance appraisal and the employee is not kept to fill the development. As it is just the game to make Human Resources happy in their eyes.

The issue about this failure of the Performance Management System is the role of Human Resources function. Many times HRM is not able to accept the failure of the system and HRM tries to make the Performance Appraisals even more complicated to prevent managers and employees to avoid the failures of the system.

But - the Performance Management System must be simple, understandable and quick. Basic rules for every single Performance Management System.

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