Advantages And Disadvantages Of Employee Performance Measurement

In today’s competitive marketplace, for organisations to be successful, they must attract, develop, and retain a team of talented and efficient staff. To accurately determine whether an employee has the necessary qualities to benefit an organisation, they must first develop some quantifiable measures. Ideally, the employee performance measurement, which is a performance management tool, will clearly identify the staff that need improvement and those that are already working well, allows the organisation to determine their capabilities and is also effective in evaluating the employees’ productivity over a set period of time. With employee’s being the basis the efficiency of almost all of today’s contemporary organisations, employee performance measurement has become a significant management tool that centres on improving employee output and, in turn, corporative efficiency. Employee performance measurement, however, is not a perfect practice and has been proven to disadvantageous depending on its accuracy and intention. The associated disadvantages include, but are not limited to, biased reports, and one-sidedness. Based on four scholarly journals, this paper examines the advantages and disadvantages of PM, determines how it affects the employees, workplace and organisation as a whole and explores effective alternative systems that can be adopted by managing parties of contemporary organisations.

The effective collection of data from employee performance measurement allows the managing parties of organisations to help employees with their personal career development. Through an unbiased evaluation of an employee’s performance, the areas of both excellence and improvement can be outlined. Once the evaluation is completed, employers...

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...ciously favour employees that either have a non-work related relationship with the employer or display similar characteristics to the employer. This bias in the workplace causes managers to tunnel vision on the personality and style of the employee instead of the actual productivity and achievements. This can eventuate into good employees feeling slighted or, which may cause tension in the workplace. This can also mislead employees into thinking their work ethic is fine when, in fact, there is a large room for improvement in terms of performance.

‘Employee Performance Measurement’ is a multifaceted management tool that centres on the efficiency of a staff team within an organisation. Performance measurement systems are enforced to reinforce the required behaviours for a successful business through their employees, as well to achieve a safe and efficient workplace.