A well-designed Performance management system is required in any organization willing to grow. In the globalization stage, strategic HR practices are required for every organization. Performance Management helps to get through the competition within the companies. For aligning major organizational functions that help attain organizational goals, Performance Management is essential. Performance Management includes- planning, implementing, reviewing, and evaluating various processes, which will help to track the performance of employees, which further helps in the growth of both individuals and organizations. Performance Management also helps to distribute the job responsibilities, and KRA helps to have a good management system to facilitate employee performance.
To have consistent performance is tough and is a great challenge in today’s tough competitive world. In that case, it completely depends upon the employee's commitment, competence, and performance attitude. A proper reward policy is essential when rewarding an employee for his/her best performance, which again acts as a great motivation. A robust performance system is needed before the age-old increment system started to fail. The previous performance appraisal via increment mode lacked the objectives and diameters on which the appraisal needs to be done. For that reason, employees used to become nonproductive, hampered organizational performance. The lack of transparent feedback mechanisms and employee involvement demoralized the employees badly. The current performance management system has a futuristic approach which helps to have a systematic approach toward the organization's growth. The transparency, the declaration of diameters and parameters for measuring, and employee involvement in performance management clarified this process.
Performance Management is having a holistic approach that takes care of the company's overall performance. Being a strategic tool Performance Management needs to develop the organization's culture. Performance Management also helps to set smart goals for employees which takes the company to great heights. To develop a proper performance Management system company needs to set a proper information system and training procedure for employees.
Nowadays performance management has become a big hit in most of the company, and now it has been integrated with various management processes such as career management, talent management, growth and development policies, and many more.
In a nutshell how performance management helps the organization to grow:
- Boost the energy level of employees.
- Motivates employees to perform better and maintain consistency.
- Saves time and energy waste accordingly.
- Helps organizations to get fit into this competitive world
- Helps to get the best and most productive employees for the organization
- Promotes self-learning process
- Promotes the skills and efficiency of employees