By Talentiro | 14 Sept 2020

Performance management system

What is the Performance management system?

A performance management system is an ongoing process between a manager and an employee that occurs throughout the year. It’s also a systematic approach to measure employee performance. It’s a process management tool that helps in communication that includes expectations, setting objectives, identifying goals, providing feedback, and reviewing results. Performance management’s goal is to create an environment where people can perform to the best of their abilities to produce the highest quality work most effectively & efficiently. Performance management is a tool that widely used by manager to monitor and evaluate the performance of their team.


Purpose of the Performance management system.

First, the need for performance management arises for companies when employees work to their best but results were contrary no-shows, issues with work quality, and lack of proactiveness. Once this problem occurs, the employer wants to know and understand what next cab be done.

The answer was a streamlined Performance management with set of processes that focus on employee job roles and aim to maintain their performance. The process needs to be followed by the organization so that employees know the role they play and how they need to be successful. Through predefined tasks, employees will perform better to complete their duties, and organizations get the best result.

Human resource departments invest lots of time and effort on their employees into perfecting their performance management processes, Originations can use hit and trial method where suggestion provided by human resource department can be taken into consideration one by one.

The objective of the performance management system

Performance engagement aims at building a high-performance culture for both individuals and teams so that they jointly take responsibility and improve the business performance continuously and upgrade their skills by analyzing the performance.

Below are some significant objectives of performance management:

  • To set and define objectives to achieve organizational goals.

  • To help the employees in identifying the skills and knowledge required to perform the tasks.

  • To set the right expectations from both individual and managers side.

  • Identifying the barriers to effective performance and try to resolve the obstacles through monitoring, coaching, and development interventions.

  • Promoting personal growth and advancement in the career growth of the employees.

  • Motivate employees by providing an individual platform to perform and use their skills.

Benefits of Performance Management System

Performance management helps the employer to observe their teams; this is one of the most influential and straightforward ways to manage team performance through this. You can watch how they interact with each other, with customers, and you can identify the strengths and weaknesses.

Performance management creates work plans though one on one meeting should provide focus to complete the tasks. If the work plan should be created with the team tasks, timelines, and required resources is provided, it will be helpful for employees to manage the deadlines.

Performance Management training pathway helps an employee to identify their weaknesses and make them more engaged in learning courses. It also allows an employer to plan how to use it to develop, support and encourage their employee.

A performance management system follows the process of regular reviews by regular reviews on the performance of the employee, and the employer can begin to create a strong understanding of strengths and weaknesses. By reviewing regularly, you can provide the support and guidance they need to reach their potential for themselves.

Early, we need to understand how the performance management cycle works.

In the below chart, these are the continuous process to maintain & increase the motivation, encouragement, and productivity of the employees. This process automatically leads to organization growth & revenue.

Importance of performance management

Performance management is one of the most important approaches for the organization. Your employees are a vital part of running the business smoothly and effectively. Keeping in mind the crucial role of employees, the performance management approach has come into practice. The importance of performance management goes beyond evaluations and promotions.
Below are some essential factors that say the ongoing performance management is so important for an organization.

Provide clarity in the organization. It’s very common in the organization employees didn’t get the clarity of their roles, to whom they have to report, share their problems, which leads to less productivity. Though the performance management company can set the explicit goals of the employees and provide the clarity of their roles, the result will often be increased productivity and confidence.

  • Monitoring the progress of your employees

To achieve business goals, sometimes it's important to review employee performance frequently to ensures that tasks are effectively completed. It also provides you to plan and strategies your business.

  • Boost employee engagement

When there is a disconnect between employee & management, it almost though the employee will go with the follow of day. Here performance management indeed involves the employees and boosts employee engagement activities. This approach can make employees active and productive.

  • Ensure the all-around development

Performance management is the tool where employer and employee can both manage their business plans. Development is not limited to the individual but also addresses the performance of the whole team and leads to achieving the organization's goals.

Performance management is the key to a successfully growing organization. Below are the benefits of the performance management system.

  • Implement a 360 performance feedback system

It allows an employee to evaluate own performance & compare it to anonymous evaluations from fellow employees, clients, and those they work with 360 are more effective if completed frequently (weekly, monthly, or quarterly) this helps the employee to improve the performance and find the gap between their achievements.

  • Maintain a record of employee performance.

It based on employee feedback & their projects. Employee record helps in appraisal & to evaluate the performance of their projects. Often employers also consider the learning programs to improve their performances.

  • Improve collaboration amongst team

The performance management system is increasingly modelling itself on social media, integrating user – friendly interface to improve the collaboration between teams.

  • Organization transparency

The goal of performance management should boost productivity and make the employees engage in work. Everything about the performance management procedure should reflect the goals, so as an organization should be transparent about its process. Open culture improves productivity and creates a competitive bar to perform the best.

  • It provides a look into the future.

By consistently monitoring and managing workplace performance, leaders can analyze potential future production. Any issue can be analyzed and improves for further flow. The earlier problems are confronted, the less effect it will leave.

“A performance management system lies in increasing performance and fostering employee development and motivation.” Amit Bhoi