Explain two potential drawbacks of performance management systems and how these can be minimised.

Words: 126
Pages: 1
Subject: Business

Performance Management (SHRM)

Managing performance is crucial to achieving a sustainable competitive advantage in today’s dynamic business environment.

Explain why this may be so, drawing on the literature and current SHRM practice to support your answer (50% of marks)

Explain two potential drawbacks of performance management systems and how these can be minimised (50% of marks)

Your discussion should include reference to underpinning theory and current SHRM practice. Your essay should include reference to underpinning theory and relevant journal articles. You may provide current real-world examples that you will use to support your analysis.

Topics should include:
Performance management cycles
Performance related pay
Targets and monitoring
Performance appraisals
Motivation theories eg. Maslow and Hertzberg, Expectancy theory (Vroom,1964), Adam’s Equity theory (1963)
Extrinsic/intrinsic motivation factors
Could use references from CIPD website and Armstrong & Barron 2007, for example.