Report: Strengths and Weaknesses of Performance Management System

This report provides a comprehensive analysis of a performance management instrument, dissecting its various components and evaluating their effectiveness. The report begins by identifying specific performance management techniques present in the instrument, such as self-assessment, rating scales, and management by objectives. It then delves into the strengths of the instrument, highlighting how these techniques can provide valuable insights into employee performance and align individual goals with organizational objectives. However, the report also critically examines potential weaknesses, including issues that may compromise assessment reliability and fairness, such as bias in the appraisal process and limitations in the rating system. Finally, the report concludes by suggesting ways to improve the instrument and the overall approach to performance management, focusing on enhancing the metrics, incorporating process goals, and providing training opportunities for managers to ensure a more effective and equitable system.

Reward and Performance Management 1
REWARD AND PERFORMANCE MANAGEMENT
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1. What are the specific types or types of performance management technique(s) present in
the instrument (150 words)?
The self-assessment or evaluation tool is present in this performance tool which allows
the employee to assess himself in the areas he is weak and strong in his/her performance (Rivai
and Basri, 2005). Also, in this tool, there is the rating scale which has three options by which an
employee gets rated. The three are, below expectations, meets expectations and also exceeds
expectations. These three are used to rank the employer and help in determining if he/she is
meeting the expectations or she is not according to the set goals and objectives (Bernardin and
Wiatrowski, 2013). There is management by objectives which test the workers according to the
goals set by the organization and how they have contributed to the same (Whiting, Podsakoff and
Pierce, 2008). Also, there is the performance appraisal, for example, the part where the
employee has been asked how he/she has contributed to the development of the other team
members.
2. What are the instruments major strengths (250 words)?
Strengths of self-assessment
Self-assessment tool enables the person who is evaluating to get into the mind of the
employee or the individual being assessed. Getting into their mind can help them know the
things that the employee values most of the time and the things the knowledge of their weakness
and strength (Kuvaas, 2007). Most of the assessment done by self-are not reliable because the
employees give what they want to give.
Rating scale
This tool often has criteria for example in this case, and it had does not meet, meets and
exceeds expectations as the rating system. This is easy to use given that the employee provides

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all the information about his/her achievements, the abilities, and experience in the place of work
among others (Chouhan and Verma, 2014). It is with this information that the employee can be
rated whether the response meets, is below or exceeds the expectations set. The other strength is
that the tool has a standard and expectation that the employee must meet which helps in rating
them effectively.
Management by Objectives
This tool helps the employees remain focused on the objectives of the organization. This
tool ensures that employees stick to the goals of the organization and that their performance gets
connected to the same.
Performance Appraisal
Performance appraisal tool is also used in helping the employees have their goals aligned
with the objectives of the organization. If used well, this tool can be a motivator as the employee
can see how they contribute to the achievement of the organization goals and objectives.
3. Are there any features in the instrument that may compromise assessment, reliability
and felt-fairness (300 words)?
Performance appraisal tool can be a great demotivation to the employees. Whenever the
employees feel that there is a lack of transparency and honesty in the appraisal, they may not
trust or have faith with the tool and get discouraged. Also since the tool relies on the two-way
conversation, it may not be fair if the person performing the assessment is biased or opinionated.
The rating system also has many weaknesses which cannot make the tool reliable in the
appraisal. There are attributes and characteristics which may fall outside the system of rating. Or
may come short with a small number, such a case may cost the employee the rating even when
he or she is doing well (Halachmi, 2005). Also, there is the overall rating where all the points are

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collected and added up if an employee did poorly in two areas the total may not be in his favor.
However, the areas where he/she did not do well might not be that area that is of great
importance or significance to the organization. Also, the rating tool is weaker in the use of words
that generalize the results, an employee may be rated as not meeting the expectations, yet he
does.
Self-assessment is the poorest and has exhibited more weaknesses since when an
individual is assessing himself or herself, the chances are that they will lie about the things they
are weak and strong (Cocca and Alberti, 2010). It is almost impossible to use that opportunity to
say things that may make your assessment look bad or attract fail result. Therefore, this tool
cannot be relied upon for consistency. Also, during the appraisal, when the employee does not
understand the importance of the organization's goals he may not be willing to contribute the
required effort. Therefore, some employees may end up lying and giving false information,
especially on their performance appraisal.
4. Are there any ways in which the instrument, and the approach to performance
management that it reveals, might be improved (300 words)?
The Effectiveness in the metrics. The metric can be improved, and in some cases, people
often look at the tool as a means of getting the percentage of what the employee scored.
However, it can be developed to include other important aspects like for example, providing the
right feedback to the employee in areas where he/she needs improvement. Also, this tool could
be used in deciding the training needs of the employee in the organization (Davis, 2011). For
example, the employee notices that he has a weakness in relating with others for the success of
the whole group. The management can pick that and find a way of training the affected employee
and help him achieve that goal.

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Individual scores in this assessment tool will always exceed the performance of the entire
team. However, this can be corrected, the score for the single employee and the team must be set
high and that it be required that they both excel in the two areas (Schraeder, Becton and Portis,
2007). Each must be tasked with the responsibility of ensuring that the goals of the team are
achieved as part of the assessment. In so doing the team performance will be enhanced, and the
appraisal will have produced the desired benefit.
The process goals are not present in this tool, but there is room to add them and
incorporate them in the assessment. When there is a precise measure of what needs to be
achieved at the end of the evaluation, the process will have a specific direction (Sullivan, 2011).
Therefore, there can be an introduction of process goals in the tool so that the persons evaluating
and being evaluated can know what is expected of them at the end of the process. Additionally,
there is room to improve this tool by adding the place where managers can be trained.

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References
Bernardin, H.J. and Wiatrowski, M. (2013) Performance appraisal. Psychology and
Policing, 257. New Jersey: Lawrence Erlbaum Associates.
Chouhan, V. and Verma, P. (2014) Measuring validity of performance appraisal tools in
Performance Appraisal System. Nirnay the Journal of Decision Science, 6(1), pp.57-64.
Cocca, P. and Alberti, M. (2010) A framework to assess performance measurement systems in
SMEs. International Journal of Productivity and Performance Management, 59(2), pp.186-200.
Davis, P. (2011) Seven biggest problems with performance appraisals: and seven development
approaches to rectify them. Development and Learning in Organizations: An International
Journal, 26(1), pp.11-14.
Halachmi, A. (2005) Performance measurement is only one way of managing
performance. International journal of productivity and performance management, 54(7), pp.502-
516.
Kuvaas, B. (2007) Different relationships between perceptions of developmental performance
appraisal and work performance. Personnel review, 36(3), pp.378-397.
Rivai, V. and Basri, A.F.M. (2005) Performance appraisal. Jakarta: PT Raja Grafindo Persada.
Schraeder, M., Becton, J.B. and Portis, R. (2007) A Critical Examination of Performance
Appraisals: An Organization's Friend or Foe? The journal for quality and participation, 30(1),
p.20.
Sullivan, J. (2011) The Top 50 Problems with Performance Appraisals. [Online] ERE Media.
Available at: https://www.tlnt.com/the-top-50-problems-with-performance-appraisals/ [Accessed
1 Oct. 2018].

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Whiting, S.W. Podsakoff, P.M. and Pierce, J.R. (2008) Effects of task performance, helping,
voice, and organizational loyalty on performance appraisal ratings. Journal of Applied
Psychology, 93(1), p.125.