Andrea A de Waal and Harold Counet
Maastricht School of Management, Maastricht, The Netherlands
Overview
Performance Management is the process of creating a work environment or setting in which people are enabled to perform to the best of their abilities. Furthermore, it also can be defined as ongoing, continuous process of communicating and clarifying job responsibilities, priorities and performance expectations in order to ensure mutual understanding between supervisor and employee. Most organization nowadays, really focus the need for an efficient and effective performance management systems (PMS) has increased over the last decade. This is because it has been shown that the use of PMS improves the performance and overall quality of an organization (Linge and Schiemann, 1996; Lawson et al 2003; de Waal and Coevert, 2007). Unfortunately,, the failure rate of PMS implementation and usage projects is said to be around 70 percent (McCunn,1998;nNeely and Bourne, 2000).
Issue
The purpose of this research is to identify the main problems that can be encountered during the implementation and use of a performance management system (PMS). Without proper research being performed on the problems, organizations that are implementing a PMS will be confronted with the same problems over and over again, resulting in inefficiency, longer project lead- times and even cancelled and terminated systems.
Contribution
The study shows the extensive overview of severe problems that can be encountered when implementing PMS by the organization. This overview has been validated by experts and as such constitutes an important contribution to the literature and practice. In respect to the latter, organization can now better prepare themselves for the issues to be dealt with during the implementation and use of PM.
Implications
The main implication of the study is that the number of experts could be