Success Factors and Problems in Performance Management

Abstract

         An effective Performance Management System increases organizational performance. Many organizations reported that they have a performance management strategy, but the effectiveness of the implementation of performance management system needs improvement. The aim of this article is to describe the problems arising from the implementation of performance management system and factors affecting success in performance management. Factors such as top management commitment, knowledge, attitude and skill of the manager, perceived usefulness of Performance Management System, employee involvement and organizational culture influence the effectiveness of a Performance management System. Problems arising from the implementation of performance management system consist of determination of performance indicators is not clear, individual goal ambiguity, discontinuous work performance monitoring, performance appraisals non-accuracy, performance appraisal not linked to performance improvement and reward.