Impact of Poor Performance Management Process

By Ts. Ling, Thomas Kiong, MIEAust., PMP, MMIM.

The focus of establishing Performance Management Process within an organisation is to increase value to the clients and the organisation itself. Careful examination of individual staff performance and its contribution towards organisational goals allows proper intervention methods to be placed on improving their weaknesses (Hadji et al., 2022). The improvement will add value to their skill sets, enabling them to complete the tasks more effectively and efficiently. Following are a few critical impacts if the weaknesses within the system are not addressed in the long term.

Lack of Employees Engagement & Collaboration

Employees' engagement and collaboration encouraged the exchange of ideas sprouting formation and creation of new knowledge, contributing to the original understanding of the subject matter worked by the organisation. The environment must be conducive and effective to encourage collaboration naturally. However, the organisation within the case study, with a strong focus and emphasis on task performance, only looks at the result. This situation ignores the flow of the process and its importance. The appraisal system measured the output of the job position and the office held by the employee rather than the contribution and value added by the employee to the organisation.
The importance of contextual performance needs to be emphasised within the organisation. The organisation's social and psychological core health is as important as task performance. This also relatess to the double-bind situation identified by Kutz (2017) in which it cause major braindrain and burnout as contextual performance is neglected. As mentioned earlier, positive social and psychological health will encourage a collaborative environment in which each employee willingly contributes to achieving the end goal. Working together as a team, the organisation can work further and overcome more obstacles, achieving higher value in return.