Advantages/ Contributions of Performance Management

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Advantages/ Contributions of Performance Management

Posted by Ripon Abu Hasnat on Saturday, June 13, 2015 | 0 comments

There are many advantages associated with the implementation of a performance management system. A performance management system can make the following important contributions:3

1. Motivation to perform is increased.

Receiving feedback about one’s performance increases the motivation for future performance. Knowledge about how one is doing and recognition of one’s past successes provide the fuel for future accomplishments.

2. Self-esteem is increased.

Receiving feedback about one’s performance fulfils a basic need to be appreciated and valued at work. This, in turn, is likely to increase employees’ self-esteem.

3. Managers gain insight about subordinates.

Direct supervisors and other managers in charge of the appraisal gain new insights into the person being appraised. Gaining new insights into a person’s performance and personality will help the manager build a relationship with that person. Also, supervisors gain a better understanding of each individual’s contribution to the organization. This can be useful for direct supervisors as well as for supervisors once removed.

4. The job definition and criteria are clarified.

The job of the person being appraised may be clarified and defined more clearly. In other words, employees gain a better understanding of the behaviors and results required of their specific position.

5. Self-insight and development are enhanced.

The participants in the system are likely to develop a better understanding of themselves and of the kind of development activities of value to them as they progress through the organization. Participants in the system also gain a better understanding of their strengths and weaknesses, which can help them better define future career paths.

6. Personnel actions are more fair and appropriate.

Performance management systems provide valid information about performance, which can be used for personnel actions such as merit increases, promotions and transfers, as well as terminations. In general, a performance management system helps ensure that rewards are distributed on a fair and credible basis.

7. Organizational goals are made clear.

The goals of the unit and the organization are made clear, and the employee understands the link between what he or she does and organizational success. Performance management systems can help improve employee acceptance of these wider goals.

8. Employees become more competent.

An obvious contribution is that the performance of employees is improved. In addition, there is a solid foundation for developing and improving employees by establishing developmental plans.

9. There is better protection from lawsuits.

Data collected through performance management systems can help document compliance with regulations. When performance management systems are not in place, arbitrary performance evaluations are more likely, resulting in an increased exposure to litigation.

10. Timely differentiation between good and poor performers.

Performance management systems allow for a quicker identification of good and poor performers. Also, they force supervisors to face up to and address performance problems on a timely basis.

11. Supervisors’ views of performance are communicated more clearly.

Performance management systems allow managers to communicate to their subordinates their judgments regarding performance. Thus there is greater accountability in how managers discuss performance expectations and provide feedback. When managers possess these competencies, subordinates receive useful information about how their performance is seen by their supervisor.

12. Organizational change is facilitated.

Performance management systems can be a useful tool to drive organizational change. Employees are provided with training in the necessary skills, and are also rewarded for improved performance so that they have both the knowledge and the motivation to improve product quality and customer service. Performance management provides tools and motivation for individuals to change, which, in turn, helps drive organizational change.