Pros and Cons of Performance Managemnent

Determining the best way to handle employee performance is one of the most difficult tasks for managers. There is undoubtedly a lot invested in employees, and everyone wants to make sure they are getting the most return on their investment. Managers naturally want to make sure their staff members are giving their best effort because an organization is only as good as the quality of its employees. It has long been possible to determine how well employees are contributing to the success of the company by using performance tools like reviews and appraisals. 

The significance of these performance reviews and their value in terms of time and effort are still up for debate, though. This can be a very meaningful process for the manager and the employee if done correctly. However, for a variety of reasons, it might have a detrimental effect on managers and staff. Let's examine some of the benefits and drawbacks of performance management. 

Pros of a Performance Management System

1. It Provides Employees with Valuable Feedback

Employees need feedback because they cannot correct their own mistakes if they are unaware of them. Employees benefit greatly from feedback since it gives them important knowledge about their areas of strength and weakness. Additionally, it offers managers the ideal chance to offer advice and suggestions for enhancement.

2.It Opens the Door for Communication Between Employees and Their Manager

It isn't always possible for staff members to talk to managers about their questions or concerns because they are busy with their daily tasks and have a lot on their plates. Employees can discuss any work-related concerns with their managers during performance reviews. Employee engagement greatly benefits from performance management since it fosters a strong basis for openness and communication between managers and employees.

3.It Can Be Used to Provide Support and Encouragement

Appraisals and performance reviews aren't always about pointing out flaws. They can also be used to honor all of an employee's achievements and triumphs. In actuality, evaluations ought to be constructive and should always start by highlighting the employee's strong points. If necessary, managers should then provide a constructive solution while tactfully discussing any undesirable behaviors. Performance reviews are also a great way to recognize and reward staff members for a job well done. Employees will be happier and more motivated as a result. 

4.Under-Performers Can Be Identified and Eliminated

Some employees simply won't cut it, regardless of how hard managers try to prepare them for their roles. Businesses can identify and record underperforming employees with the aid of performance management evaluations, which will facilitate a more seamless transition in the event that the employee must be fired. 

5.Increased retention

Employee retention is linked to employee engagement, so retaining engaged employees can help build high-performing teams.

Cons of a Performance Management System

1.Time Consuming

Managers typically take an hour to write performance reviews for each employee. This procedure could take weeks to finish for managers with more workers. It goes without saying that this can be a very time-consuming and tedious task, and it takes managers away from other duties. 

2.It Can Discourage Employees

Even though a manager may have the best of intentions, some performance reviews may actually have the opposite effect. Employees may become discouraged if the review is not a positive experience. Managers should therefore concentrate on making the process constructive, motivating, and a means of reinforcing desired behaviors. It is crucial that reviews address both positive and negative observations, even if there is room for improvement. 

3.It Can be Difficult to Remember Everything an Employee Has Done

Everybody occasionally has trouble remembering things, especially when they are balancing a lot of work. When conducting a performance review, managers might overlook a positive accomplishment of which the employee was particularly proud. This could give the employee the false impression that their efforts were not appreciated when, in reality, the manager forgot to bring it up. To avoid this, managers must record both positive and negative behaviors as they occur in order to avoid omitting crucial information when conducting a review. 

What are the Advantages and Disadvantages of Performance Management?

References:

Management Training Institute (2021). Pros and Cons of Using Performance Management Systems. [online] Management Training Institute. Available at: https://managementtraininginstitute.com/pros-and-cons-of-using-performance-management-systems/.

Morris, J. (2021). Performance management: the pros and cons. [online] hr inspire. Available at: https://hrinspire.co.uk/performance-management-the-pros-and-cons/.