What is the purpose of a performance management system

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(No Transcript)
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WHAT IS THE PURPOSE OF A
PERFORMANCE MANAGEMENT SYSTEM?

• We have talked a lot about the importance and how
  the performance management system has helped you
  out during the life of your business but a lot
  of people are unaware of what is the true purpose
  behind getting a performance management solution
  for your business. A business is a well oiled yet
  intricate machine where every part has an
  important functionality and purpose and to
  introduce a new part to the business you need to
  first understand its purpose and then figure out
  how will it fit into your organization and
  compliment all the other parts.

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PERFORMANCE MANAGEMENT SYSTEM
Performance management is a continuous procedure
of communication between an administrator and a
worker that happens consistently, on the side of
achieving the key goals of the association. The
communication procedure incorporates explaining
desires, setting goals, distinguishing
objectives, giving criticism, and evaluating
results. Now that we know what performance
management is, let us move towards the purposes
of implementing a performance management
solution.
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SMART GOALS
Let us first look at what a smart goal actually
is. In an organizational structure, SMART is
abbreviated as Specific, Measurable,
Attainable/Achievable, Relevant, and
Time-bound. Setting up a SMART goal is one of
the key purposes of a performance management
system. This helps the organization identify
what their priorities should be and what could be
allowed a little breathing room. Being able to
identify your priorities is a huge step towards
a successful business year. It also ensures that
everyone has been achieving their goals, and if
they are not, what are the reasons and how can
they be avoided.
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ENCOURAGING COMMUNICATION AND CONSTANT LEARNING
Performance management solutions keep the
employees focused and motivated and helps them
minimize problems and mistakes by providing them
with constant feedback. Not knowing what were
the of your work can be a little demoralizing to
employees. But with Performance management, you
can provide the employees with positive and
constructive feedback on a regular basis due to
short term goals and constant performance
appraisal reviews. Positive feedback gives a
sense of recognition to the employee and also
provides them with a sense of self-worth.
Whereas, constructive feedback can be a little on
the harsher side sometimes, it is just as
important for the growth of the employee as
positive feedback. Constructive feedback helps
them understand whats expected of them and how
they can do their job in a more effective way.
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DIAGNOSIS OF COMPANY ISSUES
With a proper performance appraisal method
set-up, diagnosing the issues faced by an
organization becomes a lot easier than in an
organization where is no performance management
system due to the constant appraisals that have
been taking place. Finding out the productivity
and performance levels of your employees on a
regular basis allows you to keep track of their
performances and figure out what issues are faced
by them that are hindering their progress. Such
methods also help in identifying if there is a
need for training, knowledge, abilities, skills,
and other characteristics to consider, and they
also provide a basis for figuring out your
effective and ineffective employees.
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PROMOTING COLLABORATION
Performance management solutions depend upon a
more collaborative style of undertaking business
rather than a hierarchical style which is very
obvious with the stress on communication and the
relay of information throughout the
organization. Managers are to talk directly with
their employees to find more about the problems
faced by them in order to work together towards
a solution, or if the distance between the higher
hierarchy and the lower levels is too great,
need to perform peer to peer feedback surveys in
order to find out whats troubling the other
party. This allows the entire organization to be
on the same page and also lets them work towards
a similar goal while complementing the work of
each other. These are some of the purposes that
may make an organization incorporate a
performance appraisal system or a performance
appraisal method into their business. Not only
will such a step help them grow closer towards
their objective more effectively but also helps
their employees grow as individuals in their
careers as well.