What is Performance Management? Benefits of Performance Management System

What is Performance Management System? –

A Performance Management System (PMS) is the systematic approach to measure employee performance. In this process, the organization aligns their goals, mission, and objectives with available resources and set their priorities. It is an ongoing process of interaction between an executive and an employee, in support of achieving the strategic goals of the organization.  

The administration structure is a standardized procedure of identifying and conducting the activity parts and duties, – performance, goals and set their needs between administrator and employee. It incorporates association, office, and representative shared objectives and targets which are lined up with structures.  It is the way of presenting clarity about goals and to improve the organizational processes through various techniques.

The skills and knowledge gaps are identified through this performance management (PMS) Process,  and hence it will help you to identify imperfections, and you can improve by providing them suitable training and development or coaching to employees.


The objective of Implementing a Performance Management System (PMS) –

Managing employee’s performance is the essential objective of establishing systematic Performance Management system (PMS) in an organization. These process servers primary purposes in the company, which is mention below:


Strategic –


Performance managed a system is a means which should be aligned with overall business goal pursued through an individual goal and department goals. In other words, the organizational strategic objectives should be linked with each activity performed by every employee or any department.


Administrative –


A performance management system (PMS) is also a set of the deciding part of employee’s promotion, demotion, wages increment, transfer, and terminations. It facilitates us to identify the performers, underperformers or non-performers, employees in an organization. It advances the competency and skill level of representatives or employees. Hence, it merely defines the managerial role as well and supports management decisions.


Communication –


It is an active conversation channel to inform employees about their goals, task,  job responsibilities, key deliverables, and performance standards. Further, it is also a structured method to indicate the significant areas of improvement required by the employee in order to improve his performance. In other words, it provides a platform to learn and practice on skills and knowledge for better and beneficial performance and results.


Developmental –


It is the edifice method of communicating positive feedbacks, growth areas, and improvement plans. The administrator can use various methods like training and development, mentoring, and coaching, etc.


Organizational Maintenance –


The performance management system (PMS) is the rule of measuring employee, staff, and organization achievements and estimating the performance gaps through various means and techniques. Hence, it maintains the health of the company and its performance standards.


Documentation –


The performance management forms, feedback, and reviews should be documented and maintained regularly by every business. It would enable them to look forward, to set new targets, developmental design requirements, designing learning and development programs, and career change of employment and for the department. Hence, it helps in driving the organizational necessities to the required objectives.


Benefits of Performance Management​ System –

In today’s competitive environment where the industry is emerging at a swift pace, and an organization needs to understand the advantages of a performance management system. Therefore, maintaining an employee’s performance is the ultimate requirement of an organization. The representatives are considered as an asset of the organization. The PMS serves various benefits to the business, which are as follows:


  1. It aids to provide data to find skills and knowledge gaps of representatives/employees to improvise them through coaching, mentoring, or learning and development system.
  2. It motivates employees of an organization to take a new challenge and innovate through edifice process.
  3. It provides new opportunities for the employees/ representatives for their growth and improvement in their careers.
  4. It helps to solve the complaints and disputes among team members through the proper performance evaluation system.
  5. Employees/ representatives would allow them to provide better results because of clarity on their achievement targets.
  6. It evaluates the employee’s performance fairly and certainly against the performance standards and targets.
  7. The performance management system (PMS) provides the platform to discuss, review, improve, and create the individual and department goals through conversation among administrator and their subordinates.
  8. The underperformer can be recognized through performance evaluations and can raise their skills levels equitably. It quantifies the training needs through personal development plans or performance improvement plans as well.

Leave a Reply

Your email address will not be published. Required fields are marked *