Topic > Network Solutions Case Study - 726

For example, employees rated 1 or 3 will receive more development attention than, for example, 70% of employees rated 2 or average performance. This is because top performers make up a smaller number of employees and managers will likely continue to develop top performers to reach a higher standard of excellence. Additionally, the bottom 10% of employees will have more time to dedicate to developing the skills needed to achieve goals. In theory, the bottom 10% of employees should be placed on a development plan to guide the employee and supervisor on how to achieve specific goals. However, if an employee development plan has been developed by both the employee and the supervisor and no improvement in productivity has occurred, an organization may choose to cut its losses and fire or terminate the employee. Conclusion When implementing a new performance management system in an organization there are both advantages and disadvantages that need to be considered by the design team. However, one of the best ways to know if a performance management system is effective is to implement the system within the organization and then continually monitor and re-evaluate whether the system is still relevant to the organization.