What aspect does poor performance management primarily affect?

Poor performance management primarily affects employee engagement and productivity because it creates an environment where employees may feel undervalued, unclear about expectations, or demotivated. When performance management practices are ineffective, employees might lack guidance and feedback on their work, which can lead to confusion and a lower sense of achievement. This, in turn, can negatively impact their engagement levels, as they may not feel connected to their work or recognized for their contributions.

Additionally, engaged employees are typically more productive, as they are more committed to their roles and motivated to perform well. Conversely, disengagement resulting from poor performance management can lead to lower productivity levels, reduced motivation, and higher turnover rates, ultimately resulting in a less effective workforce. Therefore, the effectiveness of performance management directly impacts both employee morale and organizational efficiency.