Reference no: EM132183094
Advantages of Performance Management
1. Performance-Based Conversations
A performance management process forces manager to discuss performance issues with employees. It is this consistent coaching that affects changed behaviors and employee development.
2. Targeted Staff Development
All employees are on a development journey and it is the organization’s responsibility to be preparing them for increased responsibility. If done well, an effective performance management system can help to identify employee developmental opportunities and can be an important part of a succession planning process.
3. Encouragement to Staff
Performance appraisals should be a celebration of all the wonderful things an employee does over the course of a year and should be an encouragement to staff. There should be no surprises if issues are addressed as they arise and not held until the annual review. The trick to positive appraisals is to focus as much on what the employee is doing well while gently course correcting undesired behaviors.
4. Rewards Staff for a Job Well Done
When pay increases and/or bonuses are tied to the performance appraisal process, staff can see a direct correlation between performance and financial rewards. This motivates and encourages employees to perform at higher levels.
5. Under-performers Identified and Eliminated
As hard as we try, it is inevitable that some employees just won’t cut the mustard as they say. An effective performance appraisal process can help identify and document underperformers, allowing for a smooth transition if the relationship needs to be terminated.
6. Documented History of Employee Performance
It is very important that all organizations keep a performance record on all employees. This is a document that should be kept in the employee’s HR file. The goal is to maintain a historical record of an employee’s performance and development journey.
7. Allows for Employee Growth
Motivated employees value structure, development and a plan for growth. An effective performance management system can help an employee reach their full potential which can be a positive experience for both the employee and manager. A good manager takes pride in watching an employee grow and develop professionally.