Question

Goal setting is a key method used to align an organization’s strategy for performance improvement.

What is performance management?

Why is performance management important to organizations?

Answer 1

For a company to make the best possible use of their resources, the creativity of their employees as well as the synergy of their workforce, there needs to be the presence of a common goal and motive in order to create an intrinsic factor of motivation to add value to the individual efforts in order to work towards achieving a common goal and reduce any conflicts, risks and therefore the most optimal use of the company's resources can be achieved. We can, therefore, say that goal setting allows the company to create an understanding of the needs of the organization and align it with the interests of the individuals in the workforce.

PERFORMANCE MANAGEMENT
Performance management can be considered as a managerial practice of shared understanding where the administration is successful in creating a work environment conducive to perform the duties that are assigned to the individuals with the best of their ability. The process begins with the assignment of the different roles and is followed through the employment life cycle until the employee leaves the organization.
It makes use of regular monitoring, managing change, as well as performing capable appraisal processes to align the interests of the workforce with the needs of the organization.

Performance management is vital for a company to undergo based on the competitive nature of the business industry in today's global landscape.
It enables the ability to maintain a set course of action, which is in line with the principal objectives or strategic outlook of the company. It allows them to establish a baseline value after a benchmarking process and continue to monitor performance for checking the level of conformance from what the current performance levels are compared to what is achievable.
For an organization, it becomes critical to perform an optimal performance management process for them to stay competitive, perform optimally, and create the necessary outlook from their business processes.