What Problems Arise from a Poor Performance Management System? Seeking Insights for My Essay

Could anyone please provide me with some problems that could occur because of a poor performance management system? I'm preparing an essay on Performance Management System and its role in organizations' and individuals' development.

Thank you

The problems that could arise due to the performance management system are that you won't be able to differentiate between poor performers, average performers, and high performers. In terms of business, productivity will be affected because incorrect targets and time frames may be given to employees. There won't be healthy competition happening within the organization among employees, and people will be dissatisfied with the percentage of the salary increase they receive at the end of the appraisal period.