What Are the Benefits of Performance Management
Benefits of Performance Management The process of performance management is very similar be it for employees, teams or processes. Performance management has become a hot topic in today’s business world. Performance management is required to know where the company and its employees stand when it comes to performance. The benefits of performance management are many; let’s see a few of them: There are certain key benefits and other benefits.
First let us discuss the key benefits: Performance Management emphasizes on results: a common misapprehension with line managers is that behaviors and activities are one and the same as results. Hence it may appear that an employee is busy with his work but he or she may not be contributing towards the goals. This makes the line manager think that the employee is working very hard and thus he or she deserves high performance rating. Supports organizational activities with the process: performance management ascertains the goals of the organization, things that are required to achieve them and the ways of achieving them. Thus is aligns them with the whole results of the organization.
Yields significant measurements: these are useful in benchmarking standards for evaluation along with the practices of the firm. This provides periodical comparison during organizational development. Apart from the above core benefits, here are some other benefits of performance management:
- Supervisor intends to look at behaviors and activities rather than individual personalities.
- Authenticates prospects: today’s business demands high expectations, hence having measurable results which can be linked to company’s goals will help to transform the firm to greater extent.
- It helps in unbiased treatment of employees since appraisals are based on outcomes.
- Fosters change in viewpoint to results from activities performed.
- Performance reviews are always based on organization goals and how an employee has contributed towards it.
- Performance is always an ongoing process, so it helps in improving activities of both employee and employer.
Apart from the benefits above there are certain concerns about performance management. It seems to be challenging and impractical to measure the performance of individuals in terms of numbers, because every individual is a human being. The behavior and traits are not the same; it differs from person to person hence making it difficult to be measured.
Today’s organizations are changing very fast thus the methodology used by them are also becoming outdated. The performance Management system should be such that it streamlines the processes, introduces new methods of evaluating performance, methods to increase the productivity of employees etc. The organization effectively and efficiently handles the work force of an organization in meeting the goals connecting the same with the performance of the employees.