Benefits of the performance management process

Benefits of the performance management process

We all know that a sound performance management system improves the overall organizational performance by managing the performance of teams and employees to achieve personal and corporate goals. Communication and transparency between managers and employees are essential to setting goals and giving and receiving regular feedback. Using feedback, employees can better understand what skills they need to develop. Also, receiving feedback makes employees recognize and value it, leading to higher self-esteem and motivation.

On the other hand, let’s face it, we have powerful feelings about why we think performance appraisals are a waste of time and ultimately add no value to the employee or organization. I agree that organizations that have a poor performance management system can have a negative effect both on employees as well as their managers. Thus, an effective and well-designed performance management process can reward employees and managers. Also, it plays a vital role in managing the performance of an organization by:

Ensuring that the employees

  • Career path;
  • Goals;
  • Required skills for fulfilling the job expectations;
  • Helping employees reach their full potential;
  • Creating the right background for level-ups and promotions;
  • Providing opportunities in development programmes for career growth;
  • Creating a clear view between performance and compensation;
  • Offering rewards on a fair and equated basis;
  • Having a historical record of an employee’s performance and development journey;
  • Having a positive influence on job satisfaction, employee retention and loyalty, improved productivity and overcomes the barriers to communication.

Moreover, clearly defined goals and regular assessments of individual performance can help determine the significant skill gaps, which may serve in designing employee training and development plans. Also, if employees are satisfied, they are more involved, committed, passionate, and empowered. And engaged employees are more likely to make suggestions or improvements that lead to innovation.

All in all, companies should look at their performance management process and have goals tied to this system to achieve both employees’ goals and as well of the organization.

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