Benefits of performance management process

We all know that a good performance management system works towards the improvement of the overall organizational performance by managing the performance of teams and employees in order to achieve personal and organizational goals. Communication and transparency between managers and employees are very important by setting goals together and by giving and receiving regular feedback. Using feedback, employees can better understand what skills they need to develop. Also, by receiving feedback the employees are recognized and valued, which leads to higher self-esteem and motivation.

On the other hand, let’s face it, we have very strong feelings about why we think performance appraisals are a waste of time and ultimately added 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 be rewarding for both the employee as well as the managers. Also, it plays a very important role in managing the performance in 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, regular assessments of individual performance can be helpful in defining the major skill gaps which may serve in designing the training and development plans for employees. 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 take a look of their performance management process and have goals tied to this system in order to achieve both employee’s goals and as well of the organization.