The performance management component is often regarded by line managers as unnecessary or as a threat. It requires a lot of effort to input information that some consider to have minimal usability. Many organizations do not link performance to pay, there are constant staff and management moves within the organization, and there is a confidentiality issue of who should access performance management information. 

The main shortcoming of most performance management components is they do not handle multiple appraisals very well, if done several times per year.  They have difficulty with 360-degree appraisals, because they do not store the relationship of the person doing the appraisal, and difficulty when more than one appraisal is done on the same day for the same performance management cycle or exercise

Level TWO - Transactions / Reports