Performance management benefits organizations and their employees

Abstract

High performing organizations require effective employee performance management systems to promote and develop the values, principles, and competencies needed to sustain their optimal outcomes. Performance management can be regarded as a systematic process by which the overall performance of an organization can be improved by improving the performance of individuals within a team framework. Effective management of individual performance is a source of sustainable competitive advantage through attempts made towards promotion of high performing workforce. For a firm to achieve this, performance management system must be used not just as evaluation and documentation tool but also as a strategic tool. In this way, there will be a holistic analysis of performance at organizational, process and individual levels for individual satisfaction, commitment and goal attainment.