Rainbow Supply Co. is having problems with their performance management system. All of the employees' performance appraisals include ratings on customer service; however, only half of the staff interact with customers as part of their jobs. In addition, many employees have complained their performance appraisals fail to capture important aspects of their actual performance, so they are not getting credit for this work.

Briefly describe the two problems with Rainbows PM system using terminology from the class. What needs to be fixed, and why?