Aims and Role of Performance Management Systems

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


The information collected by a performance management system is most frequently used for salary administration, performance feedback and the identification of employee strengths and weaknesses. In general, however, performance management systems can serve the following purposes:  (a) strategic, (b) administrative, (c) information, (d) developmental, (e) organizational maintenance, and (f) documentation. Let’s consider each of these purposes in turn.

Purposes served by a performance management system

Strategic Purpose:
To help top management achieve strategic business objectives

Administrative Purpose:
To furnish valid and useful information for making administrative decisions about employees

Information Purpose:
To inform employees about how they are doing and about the organization’s and the supervisor’s expectations

Developmental Purpose:
To allow managers to provide coaching to their employees

Organizational maintenance Purpose:
To provide information to be used in workplace planning and allocation of human resources

Documentation Purpose:

To collect useful information that can be used for various purposes (e.g., test development, personnel decisions)

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