Benefits of a Performance Management System
A good performance management system works towards the improvement of the overall organizational performance by managing the performances of teams and individuals for ensuring the achievement of the overall organizational ambitions and goals. An effective performance management system can play a very crucial role in managing the performance in an organization by:
Performance management practices can have a positive influence on the job satisfaction and employee loyalty by:
An effectively implemented performance management system can benefit the organization, managers and employees in several ways as depicted in the table given below:
|Organizations Benefits||Improved organizational performance, employee retention and loyalty, improved productivity, overcoming the barriers to communication, clear accountabilities, and cost advantages.|
|Managers Benefits||Saves time and reduces conflicts, ensures efficiency and consistency in performance.|
|Employees Benefits||Clarifies expectations of the employees, self assessment opportunities clarifies the job accountabilities and contributes to improved performance, clearly defines career paths and promotes job satisfaction.|
Clearly defined goals, regular assessments of individual performance and the company wide requirements can be helpful in defining the corporate competencies and the major skill gaps which may in turn serve as a useful input for designing the training and development plans for the employees. A sound performance management system can serve two crucial objectives:
The developmental objective is fulfilled by defining the training requirements of the employees based on the results of the reviews and diagnosis of the individual and organizational competencies. Coaching and counseling helps in winning the confidence of the employees and in improving their performance, besides strengthening the relationship between the superior and the subordinate.
In a nutshell, performance management serves as an important tool for realizing organizational goals by implementing competitive HRM strategies. It helps in aligning and integrating the objectives with the KPIs in an organization both vertically and horizontally across all job categories and the levels and thus helps in driving all the activities right from the bottom level towards one single goal.
- Performance Management System
- Need for Performance Management
- Performance Appraisal vs Management
- Performance Management - Requisites
- Development & Implementation
Authorship/Referencing - About the Author(s)
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