Team supervisors to help align larger organizational goals with individual employee goals. Every organization has an objective or goal. To make sure all resources are directed towards efficiently reaching the same goal, they have to monitor and measure their performance.
Performance management provides the mechanism or platform for certain activities and processes, including:
- Definition of job descriptions
- Setting of goals
- Measurement of performance and productivity
- Guidance and coaching
- Assessment of skills and needed training
- Review and appraisal
These activities guide employees to better understand what their participation means, what outcomes are expected, how and when performance will be measured, and in what way the results will be communicated back to them. The process also includes available guidance, intervention, corrective actions, and corresponding rewards if goals are achieved or surpassed.
Many organizations place performance management as a function under human resources because of overlapping processes such as job requisition, recruitment, training, and compensation and benefits. Many HRMS software include performance management tools. It is now understood that performance management means much more than performance appraisal, which is only one of the activities under it. The life cycle of performance management starts when a particular job role is defined as needed. The cycle ends when the employee who filled the position leaves or retires.
Performance management helps line up individual efforts that enables organizations to reach their objectives with greater certainty when combined. It steadily supports the development of employees so they become more productive. The process also supports more frequent and clearer communication between employees and management. This creates a transparent work environment and a motivated workforce. The regular measurement gives management better insight and more opportunities to intervene and respond. Leaders sometimes apply performance management to whole teams, departments, and organizations to compare actual results with desired results.