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(Slide 2)
Now coming to problems faced by organizations due to performance management system

● The first bottleneck that could be identified is that, only 2 HR heads are managing
performance appraisal for all the stores

● Secondly the process requires a lot of time and effort which becomes furthermore
difficult due to non involvement of managers or supervisors

● Thirdly apart from outstanding employees no other employees were identified hence
medium and low rated employees felt their contribution and effort were not recognized.
This generated a dissatisfaction among them.

Due to the current PMS system there are further problems faced by the organisation
❖ employees are seen neglecting their duties which leads to many complaints from store
incharges
❖ Also a higher rate of attrition is observed in employees who are rated poorly
❖ It also leads to manpower shortage and further creates a burden on recruitment process
on all stores
❖ Finally it also creates lack of motivation and jealousy among the employees who were
rated poorly.

Slide 3

Is the PMS flawed in its entirely?

It is flawed to a great extent and to elaborate on the same ,

The use of normalization technique to rate high performers lead to loss of morale ,as even if a
candidate had done well , the bar for promotion was kept so high that candidates who
performed outstanding had to consistently do for so 3 years and all other categories were not
even considered for promotion .

Inefficient in terms of time consumed , the effort taken in appraisal of employees was nullified by
the normalization as it uniformly did that through comparable positions across all locations and
that is unfair as a store with greater footfall will face diffirent diffculties from a smaller store and
this should have been considered..

No clarity in the evaluation of the new comers

No training opportunities provided to the employees to correct themselves ,after a specific rating
there is nothing mentioned regarding how employees can perform better for consecutive
evaluations.

No regular feedback provided as the PMS was annually done .

High attrition rate among the employees for no opportunities to grow

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Advantages
It was transparent
There was a structured questionnare for each performance paramater
Provision of self rating appraisal