Question

Supervisors can obtain information on employees’ performance from either one (1) source or from a combination of sources. Discuss the advantages and disadvantages of collecting performance information from only one (1) source; recommend and describe a performance management system which in your opinion would reduce the demerits of collecting information from only one source.

Answer 1

The advantages of receiving the performance information from only one source are:

1. Less Time: The first big advantage of having the performance information from only one reliable source only would be the less time. You don't have to reach out to various people to get the performance information and thus it saves time.

2. Less Costs: Apart from saving time, it also saves the costs and other resources as you do not have to conduct seminars etc to have the performance information from other sources as well. It helps in saving costs.

The disadvantages of receiving the performance information from only one source are:

1. Less Quality: The first disadvantage is the less quality. As you are reaching out to only one source only, it is less credible and also less qualitative to have the performance information from one source of information only.

2. Prejudice: Another aspect could be prejudice. For example, if you are only collecting the performance indicator on the basis of the present performance, an employee who was brilliant in last 3 months but due to some personal issues is not able to give focus at work at present time would get low performance grading because of the same prejudice.

A performance management system which would help in reducing the disadvantages mentioned above would be a system where not the 360 degree feedback but the feedback and the information should be collected from at least 2-3 sources would be credible enough. Collecting the information from one source is always risky thus the company should make a through check by collecting the information from at least two sources and analysing the overall work of the employee not giving and concentrating on only one aspect for his better job performance.