The case highlights the key concerns and issues an organization may face if its performance management system (PMS) does not serve its intended purpose and how it can cause demotivation and dissatisfaction among employees and result in an overall decline in organizational performance. It also illustrates how employees’ organizational culture and perception can be as important as the system design and can present challenges even if an elaborate system is planned. In the face of increasing turmoil among employees towards management and the decreasing performance of the organization, TECHNO21 decided to change its current PMS, which seemed a difficult but necessary step to achieve the desired performance levels and overall strategic objectives of the organization.
