Here are some of the key problems and challenges with performance management discussed in the literature:
- Lack of clear goals and objectives: Goals and objectives need to be specific, measurable, achievable, relevant and time-bound (SMART) for effective performance management. Often goals are vague or not clearly communicated.
- Bias and subjectivity: Performance ratings are sometimes biased by factors like an employee's likability rather than actual performance. Ratings lack consistency and objectivity.
- Focus on ratings not development: There is often too much focus on performance ratings and rankings rather than development, coaching and continuous feedback. This does not support long-term growth.
- Top-down approach: Performance management is sometimes