Challenges in PMS

Kathmandu University School of Management

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 Kathmandu University School of Management
The process consumes too much
valuable managerial time!
• The average manager spends 400 hours per year on this process.

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 Kathmandu University School of Management
The financial cost….
In management expense.
• An $85,000 manager, with benefits and bonus, makes
approximately $55.53 per hour.
• $55.53 * 400 hours per year = $22,212 for ONE manager!

3
 Kathmandu University School of Management
The return-on-investment is low
• 85% of companies report that their performance assessment
systems are only “moderately effective!”

4
 Kathmandu University School of Management
The business climate changes too
quickly for annual goals to be
adjusted in a timely manner
• Competitors, legislation, management, technology, etc.

5
 Kathmandu University School of Management
Many employees (especially
Millennials/ Gen Y) are accustomed
to almost instant feedback, not
annual feedback
• Anything older than 30 days is considered “yesterday’s news”

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 Kathmandu University School of Management
Mid-Year reviews don’t occur
consistently
• Stuff happens; time slips. They are not a priority… for anyone!

7
 Kathmandu University School of Management
Annual reviews are about
compliance, not about coaching
• Don’t believe it? Check with HR. They will always track appraisal
completion, but will rarely review the content for quality

8
 Kathmandu University School of Management
Many managers do not handle
confrontation well
• This results in “soft”, sometimes meaningless, performance
appraisals

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 Kathmandu University School of Management
And most employees do not like
constructive feedback
• Even when coaching is delivered positively and professionally,
trust and teamwork can be damaged when employee feel
“dumped on” at year end

10
 Kathmandu University School of Management
No one enjoys discovering that
they are “Average”- or worse!
• Only the top performers enjoy knowing their status in the food
chain

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 Kathmandu University School of Management
The proximity of recent events
• Many managers will evaluate the employee on what they have
most recently produced, not taking into account the full-year
radar

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 Kathmandu University School of Management
At some point in the management
hierarchy, the process breaks down
• “My boss doesn’t do an appraisal for me. Why should I bother
doing them for my team?”

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 Kathmandu University School of Management
Employees are very skeptical of the
process
• 45% of employees surveyed said that they did not believe that
their appraisals supplied them with honest feedback or that their
managers truly helped them improve their performance

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 Kathmandu University School of Management
The “December Struggle” for
employees and managers; trying to
remember what happened last
January?
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