Performance management is defined as the process of continuous communication and feedback between a manager and employee towards the achievement of organizational objectives. It includes formal, semi-formal, informal means or channels of communications like grapevines and gossips.
Why a Performance Management System for a company?
Performance management supplements the annual performance review. This prepares both employees and managers about what to expect during the annual appraisal. It keeps both the manager and the employee in the loop about ongoing changes to the performance management process, what both can do to streamline it, and how performance overall can be improved.
Continuous performance management indicates that managers value them. Employees believe that their managers are interested in their work and care about their goals and any issues they may face in the course of their job. They also become more open to receiving constructive feedback.
Major highlights are below:
Evaluation of an employee’s performance helps to take management decisions on features of performance appraisal:
- Evaluation of an employee’s performance helps to take management decisions on transfers, promotions, increments etc.
- Performance appraisal helps to ascertain the training and development needs of the employer.
- Performance appraisal. or an individual’s performance evaluation helps in designing the reward system.
- The feedback presided after evaluating the performance of individual acts as a motivator.
- The Performance appraisal acts as a validation of the selection procedure.