What are the importance of performance management
Meaning of Performance Management:
The systematic process which can be employed for the improvement of overall performance of an organization by enhancing individual performance within the framework of a team is called performance management.
This process can be seen as one of the most effective tools for boosting the performance by defining roles within the specified competence framework, setting realistic benchmarks, and communicating various expectations.
The importance of performance management can be understood by the below stated points:
1. competitive business Environment:
In comparison to previous years the current organizations are increasingly required to handle various issues related to performance due to increased competition and the need to perform greater activities with limited resources. It is only the human resources which can ensure the existence, survival, and success of any organization in the dynamic business environment.
2. Business - HR Partnership:
A lot of pressure is exerted on the human resource managers for providing the worth of human resource activities mainly in two dimensions. First of all, the contribution to the bottom line of the business in terms of sales, earning, profits, and turnover per share and
secondly the effectiveness of the various activities of human resource and various activities in efficient operations of the organization with respect to work culture, competence and skills of human resource, and performance of manpower.
3. Installing High Performance Work Culture:
The main focus of performance management practices is to develop a unique and constructive work environment. . all of these efforts help the employees to improve their performance to an optimum level.
4. Long Term Impact and Sustainable Outcomes:
By implementing the performance management practices, it is possible to attain long term favourable outcomes for both the organization and employees because both ling term and short term needs of organization and its manpower are effectively handled by performance management.
5. Individual and Collective Development:
All the performance driven interventions will be provided to the individual as an employee and as a member of the team.
Thus it is possible for an employee to grow and develop with his own special identify along with being a team player when execution of various activities depends on interdependence. Both collective and individual form of performance is required in current organizations and a harmony must be prevailing between them.
6. Optimising Human Capital:
The biggest challenges in front of the organization are to transform these potentials into meaningful skills and competencies, utilising them smartly for business benefits, and channelising them towards a defined objective.
7. Regular Renewal of Skills and Competencies:
There will be a regular requirement of renewing the skills and competencies due to technological environment, reduced product life cycles, and fluctuating various operational and organizational level competencies.
8. Fairness and Equality in Management:
It is possible to ensure fairness in all the aspects of the management with the help of performance management. When equality and fairness are implemented lot of benefits are achieved by both the organization and employees.
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