In my earlier article, I have put up many advantages of setting TPM within an organization. But there are also practical challenges/problems/issues that we will normally see during the implementation of this TPM.

This is appended below:

1. Employees do not know how to set up their key performance areas(KPA) and the corresponding key performance indicators(KPI);

2. Their KPA set up are often too many or they do not follow the SMART principle(specific, measurable,ambitious,results oriented and time bound). They might not understand that the KPA defined are focused towards the more important job roles;

3. KPI cannot be properly reflected particularly due to the inter-dependencies of activities between departments and units within an organization. The results of the KPI’s will be influenced by the results or activities in other areas of operation or in other units in the organization. This has serious repercussion since the organization’s compensation system is based only on the managers’ achievement. Hence, they will be penalized for the non-achievement of their targets;

4. KPI’s and targets normally measure performance by measuring only quantity and not quality of work. By reviewing the numerical results, it could lead to negative consequences. This might further lead to managers’ managing their activities focusing only on short-term results rather than the overall long-term benefits to the organization.

In view of the foregoing, as KPA& KPI’s are now more frequently being used as a means of control and as a measurement of and reward for employees’ performance, the KPI’s should be used with care, more to review the problems and achievements in each area, rather than to solely used to penalize employee.

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