Question

Discuss the purposes of performance management systems.

Answer 1

Performance management aims at building a high performance culture for both the individuals and the teams so that they jointly take the responsibility of improving the business processes on a continuous basis and at the same time raise the competence bar by upgrading their own skills within a leadership framework.

The main purpose of performance management is to ensure that the organization as a system and its subsystems work together in an integrated fashion for accomplishing optimum results or outcomes.

The purpose of performance management is discussed below:

• To enable the employees towards achievement of superior standards of work performance.
• To help the employees in identifying the knowledge and skills required for performing the job efficiently as this would drive their focus towards performing the right task in the right way.
• Boosting the performance of the employees by encouraging employee empowerment, motivation and implementation of an effective reward mechanism.
• Promoting a two way system of communication between the supervisors and the employees for clarifying expectations about the roles and accountabilities, communicating the functional and organizational goals, providing a regular and a transparent feedback for improving employee performance and continuous coaching.
• Identifying the barriers to effective performance and resolving those barriers through constant monitoring, coaching and development interventions.
• Creating a basis for several administrative decisions strategic planning, succession planning, promotions and performance based payment.
• Promoting personal growth and advancement in the career of the employees by helping them in acquiring the desired knowledge and skills.