By: Felicia Nana Ama KYEI
Performance management should be one of the most powerful tools an organization uses to develop its people. When done right, it builds trust, helps employees reach their potential, and aligns personal growth with business success.
It can be the difference between an employee who feels valued and motivated to succeed, and one who feels stuck, unseen, or even targeted.
But let’s face it: not every performance review feels like a career-shaping conversation. For some employees, appraisals aren’t a chance to grow but a moment they dread—where personal biases, vague feedback, or even hidden agendas take center stage.
When performance management is misused, it can destroy trust and morale, leading to frustration, disengagement, and in some cases, good people walking out the door.
So, where does the line fall? Is performance management being used to help people grow or to settle scores? Let’s explore the issue by looking at its ideal purpose, where it goes wrong, and the real human impact when it fails.
When Performance Management Works
The best performance management systems are about more than just ticking boxes or deciding annual bonuses they’re about connection.
A great appraisal leaves an employee walking away with clear goals, actionable feedback, and a sense of being supported. It should be the foundation for growth: a collaborative process that helps people succeed in their roles and plan for the future.
Imagine a manager who notices an employee struggling with time management. Instead of penalizing them, the manager uses the performance review as a conversation starter, helping the employee identify challenges and offering tools like a project management workshop or mentoring.
Not only does this build trust, but it also shows that the organization is invested in the employee’s success.
Organizations that prioritize growth-oriented performance management see the results in employee engagement. Companies like Microsoft and Google have adopted systems that focus on regular, meaningful conversations instead of just once-a-year evaluations.
These systems emphasize clarity, fairness, and actionable steps, making the process about development, not just judgment.
When performance management works, employees feel seen, supported, and motivated. But when it fails? The consequences can be devastating—not just for individuals but for the whole organization.
When Performance Management Goes Wrong: Real Stories
Sometimes, performance management isn’t used to develop people but to punish them. And when this happens, the human cost is far greater than a bad review. Here are three real-life examples of how things can go wrong.
Case 1: The Retaliatory Review
A manager at a large tech company, let’s call her Lisa, spoke up about her supervisor’s micromanagement and unfair practices. She filed a formal complaint, hoping the issue could be resolved. Instead, her next performance review took a drastic turn.
Previously praised for her collaboration and innovation, Lisa suddenly found herself rated poorly on vague qualities like “team alignment.” The critical feedback didn’t come with examples or suggestions for improvement—it was clearly retaliatory.
The experience left Lisa feeling demoralized. Her career stalled, her confidence was shattered, and within six months, she resigned from the company. The organization, meanwhile, faced legal action and a damaged reputation after employees discovered how the system had been abused.
The Human Cost: Lisa wasn’t just “a resignation.” She was a talented manager with ideas and potential, forced out by a system that should have protected her.
Case 2: Bias and Missed Potential
At a manufacturing firm, female employees consistently received lower performance ratings than their male peers—even when their results were just as strong. One standout performer, Sarah, led major projects that saved the company millions. Yet, her appraisals described her as “helpful” and “a team player,” with little mention of her strategic impact.
Meanwhile, her male colleagues were praised for “leadership potential” and fast-tracked for promotions. Despite her achievements, Sarah was never given the same opportunities. Tired of fighting to be recognized, she eventually left the company for a competitor that valued her contributions.
The Human Cost: Losing Sarah wasn’t just a financial blow—it was a cultural one. The company lost a role model who could have inspired and mentored others.
Case 3: Vague Standards, Broken Trust
James was an entry-level employee at a fast-growing retail company, consistently hitting his sales targets. Yet every performance review seemed to focus on his “attitude.” His manager would say things like, “You need to work on being more of a team player,” but never offered specific examples or feedback.
James later discovered his manager had been using these subjective comments to justify lower ratings, making it harder for him to qualify for raises or promotions. It wasn’t about his performance—it was about favoritism.
Eventually, James quit. He wasn’t alone: turnover at the company skyrocketed as others realized the system wasn’t fair.
The Human Cost: For James, the broken system made him feel undervalued and disposable. For the company, it created a toxic culture and damaged its employer brand.
How Do We Fix This?
Performance management doesn’t have to be this way. Organizations can safeguard the process, ensuring it remains a tool for growth rather than a weapon for personal agendas. Here’s how:
- Set Clear Standards
Employees need to know what success looks like. Appraisals should be based on measurable, objective criteria, such as project outcomes, sales targets, or customer satisfaction scores. Vague comments like “poor alignment” or “bad attitude” leave too much room for bias.
- Train Managers
Managers are human, and they need help recognizing their biases and learning how to give meaningful feedback. Regular training on topics like emotional intelligence, unconscious bias, and communication can make a huge difference.
- Incorporate Multiple Perspectives
360-degree feedback systems, which include input from peers and subordinates, reduce the risk of one person’s bias dominating the review.
- Prioritize Transparency
Employees should understand how their performance is being evaluated and have opportunities to provide their perspective. Open, two-way conversations build trust.
- Focus on Regular Check-Ins
Instead of one big, high-pressure review at the end of the year, frequent check-ins allow for ongoing feedback and course correction. It’s easier to fix a problem in real time than six months later.
Performance Management Is About People
At its heart, performance management isn’t just about metrics, systems, or reviews, it’s about people. It’s about giving employees the tools they need to grow, while also holding them accountable in a fair and transparent way.
When used correctly, performance management inspires trust and fuels careers. But when misused, it creates frustration, breaks relationships, and costs organizations their best talent.
Every appraisal is a choice: Do we use this moment to help someone grow? Or do we let bias, vagueness, or personal grievances undermine their potential? The answer to that question doesn’t just shape individual careers—it shapes the culture of entire organizations.
In the end, performance management is about building people, not tearing them down. The responsibility lies with every leader to ensure that their systems, and the people behind them, live up to that promise.
The writer is a Senior Consultant, Clean Vision HR Solutions
[email protected] / www.cleanvisionhr.com
Disclaimer:
This article is intended for informational and educational purposes only and does not constitute legal, professional, or HR advice. The case studies included are illustrative and may be based on real-life scenarios but have been anonymized to protect confidentiality. Organizations should consult with qualified HR professionals or legal advisors to address specific concerns related to performance management or workplace policies. For tailored HR solutions or professional guidance, feel free to contact the writer at [email protected]
