Dangers of a poorly implemented performance management system include all of the following except:

Dangers of a poorly implemented performance management system include all of the following except:

Chapter 1—Performance Management and Reward Systems in Context

True/False Questions

1. A performance management system is the systematic description of an employee’s

strengths and weaknesses.

False

2. Linking each individual’s performance to the organization’s mission involves

explaining to each employee how the employee’s activities are helping the

organization gain a competitive advantage.

True

3. Feedback often decreases motivation to perform because it points out what an

employee does wrong.

False

4.Dangers of a poorly implemented performance management system include wasted time and

money, lack of standardized employee ratings, and confusion on how ratings are obtained.

True

5. Intangible returns include benefits and work/life programs.

False

6 Exempt employees are often employees in managerial or professional roles on salaries, and are

not eligible for overtime pay.

True

7 Short-term incentives are one-time payments typically given quarterly or annually.

True

8 The strategic purpose of PM systems involves constructing the strategic vision for the organization.

False

9 A reliable performance management system includes all relevant performance facets and does not

include irrelevant performance facets.

False (this is a function of valid PM)

10 Distributive justice is the perception that the performance evaluation received is fair relative to the

work performed.

True

11 Performance management systems in foreign subsidiaries often differ from those in home country

headquarters as differences in the power distance (i.e., the degree to which a society accepts

unequal distribution of power) increase between/among countries.

True

Multiple-Choice Questions

Lack of Employee Engagement

Poor performance management programs can quickly erode employee engagement. For instance, when a performance plan is unclear, employees are unsure how their everyday work contributes to the agency’s mission. There’s no sense of growth or progress—essential ingredients for developing engaged and high-performing employees. Also, if employees see the program as unfair, they are likely to feel uninspired about their future at the agency, experience lower motivation, perform at lower levels, or leave the job altogether. When you have talented employees, it’s up to the managers to find areas in which they can improve. Options for development include expanding their gifted personnel’s skill set and providing training and support. Talented employees want feedback and it’s the manager’s job to deliver. If they don’t, the agency’s best people will grow complacent and disengaged.

Biased Performance Ratings

Varying and unfair performance standards and ratings can arise under a fragmented performance management system. While most biases present in performance management are unintentional, managers are more disposed to give biased reviews in the absence of objective performance data and assessment metrics. The introduction of human biases, such as personal values, ideas or relationships could also lead to unfair treatment. Unfortunately, the employee and manager might not recognize actual performance problems in this situation, leaving issues undiscussed as they continue to affect the organization.

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Low Employee Self-Esteem

Performance management systems that lack structure are more reactive than proactive, meaning that employees will typically only hear from managers when they’ve done something wrong—a common practice that takes a toll on staff confidence. Also, if an employee feels that they are evaluated unfairly, they may lose self-esteem, which is a crucial element to success. Low self-esteem could create resentment towards management and even the organization as a whole. Showing appreciation, approval and attention to employees with a healthy mix of constructive and positive feedback will make them feel confident in their job and motivate them to perform at even higher levels.

Wasted Time and Money

A poorly implemented performance management program puts a strain on managers. The average manager spends 210 hours a year on performance review activities, usually during an annual feedback cycle. The large amount of time and energy spent on performance management is magnified if the performance management program is not providing the benefits that come from a well-implemented program. Unless managers check in with employees regularly, a single conversation at the end of the year may prove useless. Ongoing performance management is time- and cost-efficient, and it produces optimal results.

Damaged Relationships

Manager-employee relationships are also at risk under weak performance management systems. Employees subject to ineffective systems and performance review practices are likely to feel upset, demoralized, and demotivated. This can lead to personal relationships that are damaged, sometimes permanently.

Giving negative evaluations with no data or proof to back them up can increase litigation risks. If an employee feels as though they’ve been evaluated unfairly they could seek costly legal action against the agency.

Unclear Reward Systems

Due to poor communication, employees may not understand the link between their behaviors and results, and how those translate into performance ratings. Likewise, employees may not comprehend how their ratings translate turn into rewards. The absence of clear links makes it unlikely employees will be motivated to perform at a high level. A poorly-implemented performance management program could cost your agency in many ways. It will not only fail to build progress toward the agency mission, but it could actually have a detrimental effect on the employees’ motivation, relationships, time and energy! Don’t miss out on the rewards of an effective federal HR management system. A well-implemented program improves the performance of individuals, teams and the agency as a whole.

This article was originally published as part of the GovLoop Featured Blogger program.

Which of the following is possible danger of a poorly implemented performance management system?

Dangers of a poorly implemented performance management system include wasted time and money, lack of standardized employee ratings, and confusion on how ratings are obtained.

What are the problems with performance management systems?

A few common performance management problems that managers see are: Poor prioritizing and time management. Lost time (coming into work late, excessive absences, phone use, break time, etc.) Slow response times to incoming requests.

What are the consequences of poor performance?

The poor performance of one individual can have a damaging, ripple effect across your entire business, resulting in a wide-spread loss of motivation, productivity and a decrease in customer satisfaction. Other employees may become disengaged and resentful, leading to an increase in absence and staff turnover.

What are the reasons for poor performance management system?

6 Most Common Reasons Why Performance Management System Fail.
Unstructured Performance Management Process..
No Or Wrong Selection Of Employee Goals..
Barriers In Communication..
Overemphasises On Recent Performances..
Annual Performance Evaluation..
No Employee Recognition And Rewards..