Business and Economics: Performance Management

Cite this

Poor design and implementation of a performance management system adversely affect an organization’s operations. A company should consider employing a good management system that helps the organization reach its set goals. There are many negative consequences that poor management systems bring. Those affected are the supervisors, employees, and all stakeholders of an organization in general.

On-Time Delivery!
Get your customized and 100% plagiarism-free paper done in as little as 3 hours
Let’s start
322 specialists online

The morale of employees is affected by poor management. Employees are critical players to an organization’s success. Where the management system evaluates employees unfairly, the esteem of employees is lowered. If employees have low esteem, they are likely to perform without motivation. Lacking job satisfaction is risky for an organization as it means low productivity and hence lesser sales. Also, an organization is unable to set standards that are clear for its employees. Employees then find themselves being checked under an unfair process as they fail to know what is termed as excellent or poor performance.

Lack of proper utilization of resources such as time and money. Where there is inefficient management, evaluation is not strictly adhered to. This brings about piling up of performance Evaluation work as well as compiling of the results. A lot of time that would have been used to prepare reviews bit by bit is wasted. A good system should check and invest in regular performance evaluations. Also, Supervisors face issues in making peer reviews. This forces them to use their employees as extra labor for compiling the reviews. Annual appraisals take time, and this shuts down the organization’s activities hence losses in production. In addition, supervisors who lack data and metrics for performance gauging may end up giving biased reviews. Biased reviews are unfair to employees, and they demotivate them hence lesser job satisfaction (Rajala & Kokko,2021).

A good management system should provide the ways in which the best results can be obtained in an organization, from the employees and the supervisors or teams for the organization (Fulton et al., 2019). Performance evaluation should be a concern since it leads to the attainment of goals, set standards as well as competence of individuals. Employers are tasked with giving supervisors direction on work accountability and the work expectations they should guide employees towards. Discussing performance is crucial because it encourages more training of employees in the profession and more effort while performing tasks.

Informal management of performance is also an effective method of maintaining a good management system. When employees provide unsatisfactory services, they require to be offered advice and more training as it helps in performance improvement (Aguinis, 2013). Performance management helps in talent development. Developing employee skills is vital for an organization, and it yields immense success.

Lastly, a good system helps measure an organization’s achievements; hence the well-being and standards of the organization are maintained. Documenting all employees’ performance allows for good decision-making. It may lead to promotion or termination, thus the stability and success of an organization.

Disruption of performance management may occur in the case where monitoring is not emphasized in an organization. Monitoring is a key component of performance management. Workers should be supervised at all times to ensure that they reach the goals they have been set to achieve. When managers are not as keen on employees’ activities, there may arise problems due to an ineffective performance management system.

Yes, we can!
Our experts can deliver a custom Business and Economics: Performance Management paper for only $13.00 $11/page
Learn More
322 specialists online

Organizations use performance monitoring tools, for example, Appdynamic platforms. The systems provide users’ reviews, for instance hence showing if the employees satisfy the customer needs. In the case where the tools collapse, it is likely for the organization to fail to have an efficient system. The number of workers in an organization may be interfered with in the case where a company’s management system is hacked. Some employees may be omitted from the system, and this will lead to an unfair evaluation.

Another way monitoring can be disrupted when users’ identities are not being kept confidential. Users may find it too exposing hence providing false information to their satisfaction. This would result in an inaccurate review as most responses would be dishonest. Also, follow-up quality may be distorted as a messed-up system is slow on performance evaluation. A delayed evaluation may cause slacking off employees, leading to deteriorating the organization’s activities. A management process that has been disrupted would bring about slow results hence late rewarding or delayed layoffs that would have already affected the organization.

Performance review covers many areas that are then documented for use by an organization. While discussing the areas concerning the performance of an organization, there are questions that I would formulate as a student. Focusing on the organization’s goals and vision is the central focus because it is the primary determinant of the success or failure of an organization (Aguinis, 2013).

First, I would inquire if managers keep reminding employees of the objectives and the organization’s Smart goal. I would ask if they check the progress employees feel they have made within specific periods, for example, after a month. In the case where the employees tell the managers that they are facing obstacles, I would be curious about the method they use to beat those obstacles.

Another area I would discuss with my manager is the performance and career development matter. I would ask about the training that the organization I work for offers. I would also ask the time frame offered for further studies as well if there is any financial support that the company gives. In addition, I would find out how regularly the manager needs my feedback on the work progress I make. I would ask whether raising problems during feedback would result in offering solutions. Also, I would ask if the achievement is rewarded and with what criteria. It would also be necessary for the manager to inform me of the timeframe of action. I would ask how long-acting feedback takes so as to understand if the feedback I provide is heard and acted on.

I would also ask the manager about the steps the organization takes while listening to issues and concerns in the organization. I would also ask how the organization creates a conducive environment for airing issues without any fear. The organization’s environment would interest me because it would help me understand how free employees get while at the organization. Other questions I would ask are whether every employee’s skills and strengths are put into use. Every employee is uniquely talented and engaging in their skills to help bring about better work engagement. Lastly, I would ask about the action taken in the case where personal, Organizational, or team priorities change. Adoption of new strategies would help me understand how the performance of the organization is arrived at.

In conclusion, performance reviews help improve productivity. Organizations should invest in timely and cost-efficient reviews for the purpose of decision-making. Reviews help in re-strategizing hence the success of an organization.

Cut 15% OFF your first order
We’ll deliver a custom Management paper tailored to your requirements with a good discount
Use discount
322 specialists online


Performance Management: Pearson New International Edition. Herman Aguinis. (2013). Pearson Higher Ed.

Fulton, E. A., Punt, A. E., Dichmont, C. M., Harvey, C. J., & Gorton, R. (2019). Ecosystems say good management pays off. Fish and Fisheries, 20(1), 66-96.

Rajala, T., & Kokko, P. (2021). Biased by design–the case of horizontal accountability in a hybrid organization. Accounting, Auditing & Accountability Journal.

Cite this paper

Select style


BusinessEssay. (2022, November 22). Business and Economics: Performance Management. Retrieved from


BusinessEssay. (2022, November 22). Business and Economics: Performance Management.

Work Cited

"Business and Economics: Performance Management." BusinessEssay, 22 Nov. 2022,


BusinessEssay. (2022) 'Business and Economics: Performance Management'. 22 November.


BusinessEssay. 2022. "Business and Economics: Performance Management." November 22, 2022.

1. BusinessEssay. "Business and Economics: Performance Management." November 22, 2022.


BusinessEssay. "Business and Economics: Performance Management." November 22, 2022.