Why employee Performance Management is important 

Employees are indispensable and integral part of any organization. There’s just no debating that fact. They play a key role in the smooth and efficient functioning of the organization. So, it’s obvious that managing their productivity is something that all organizations must take seriously. That’s where ‘Performance Management’ comes in. 

Performance Management refers to a set of strategies and processes that help companies manage their employees and their productivity. With these strategies and processes, companies gain the ability to extract the best out of their employees.  

The whole of performance management encompasses everything from monitoring employees to even developing traits that serve the organization’s long-term goals. Needless to say, this includes rewarding a job well done and measuring progress.  

Here are a few more reasons why Performance Management is necessary for any organization.  

The establishment of goals 

Employees, more often than not, need to be told what is expected of them. They also need to know where they stand and how their duties contribute to the overall functioning of the organization. This kind of goal setting begins at the executive level and moves down the chain, right down to the individual employee.  

When the workforce is aligned with an organization’s larger goals, it results in the average employee feeling a sense of ownership. This leads to better productivity and improved work contribution.  

The building of skills 

Now, establishing goals is just one part of the picture. Sometimes, employees just may not possess the skills necessary to work towards these goals. This is where performance appraisals come in. Though they are often seen within a negative context, appraisals are necessary for the development of skills. They help managers address gaps and other issues, which can then be treated with solutions.  

Improving employee performance requires consistent feedback and training. There are more chances of an organization hiring potential rather than experience. So, this potential needs to be explored and that’s what performance management aids in.  

lot to lose 

It’s quite clear now how performance management contributes to an organization’s growth. On the other hand, if there is no performance management being practiced, it can lead to several issues. You could be looking at reduced engagement, low performance, and eventual failure.  

For example, not employing proper evaluation criteria can result in employees losing trust in the organization, which, in turn, leads to high attrition.  



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