WHY YOUR ORGANIZATION NEEDS A GOOD PERFORMANCE MANAGEMENT SYSTEM.
A performance management system is a collection of processes that ensure the involvement of employees in improving organizational effectiveness towards the achievement of an organizations goals and objectives. The system ensures that both managers and employees are involved in the process of planning and monitoring the work. It is a continuous cycle of setting objectives, monitoring progress and assessing feedback to promote efficiency and effectiveness. The benefits of performance management system are numerous but all converge in ensuring the overall increase in performance and productivity of the organization.
First and foremost, involving employees in the initial objective-setting process ensures that each and every one of them knows exactly what is expected from them by the organization. This overcomes barriers to communication and increases accountability. It also presents an opportunity for them to make important contributions or remarks on the suggested objectives.
Performance management practices create a forum for interaction between employees and managers. The interaction ensures that employees as well as the managers are on the same page regarding the direction that the organization aims to follow. A good working relationship based on respect and trust ensues. This results into a significant increase in the performance of teams as well as individual workers facilitated by a cordial and harmonious working environment.
A good performance management system can ensure optimum levels of performance by mapping the right skills to the right jobs. Assigning employees to where they are skilled most promotes effectiveness in performance and as a result higher productivity levels. Apart from employees and managers, performance management systems also improve customer satisfaction there by gaining new customers and retaining old ones.
In conclusion, good performance management systems are necessary in any organization. Without them, there is a high probability of disconnect between the organizations goals and the employee expectations which would ultimately lead to business failure.