Performance management has a huge ability to transform the organization by increasing the productivity of the firm and can promote healthy competition among the members. Contributions and potential of the individual employees will be recognized and valued by upper management. Performance appraisals can create an ambitious atmosphere which will help an employee perform to the best of their ability in turn creating growth within the organisation. Major benefits of performance appraisals include
- identification of employee strengths and weakness
- selection & mentoring of high-performance candidates
- providing proper feedback – for improvement, creation of training programs to assist in employee growth
Rewarding performance : This work payment culture referred above links compensation with quality of the work done. Workers are paid depending upon the performance and may vary for all the employees. Compensation is reflected on the quality of the work and paid according to KRA’s, KPI’s & other performance parameters that are set & revised periodically. This culture ensures success for both employer and employee.
Identifying high potential candidates : The most crucial and challenging part is recognizing high performing individuals and preparing them for higher management positions. Succession planning in conjunction with mentoring helps preserve continuity within the team. It helps employees identify a growth path that they can work towards improving performance and reducing attrition. By referring through the quarterly, annual reports and entire work history, Managers can find the best internal candidates for a promotion. This simplifies the process of finding right candidates to fill the higher management positions. Internal hires are inherently better since there is no time required for the person occupying the new position to get upto speed on the culture, internal workings & work style of the company.
Track strengths and weaknesses : A single person can never be single handedly responsible for an entire organizations success, It is always team effort which creates success. A great combination of experience and strengths determine the firm’s future. Identifying right candidates for a higher management positions is a crucial task for managers and should be based on multiple parameters including skillset, performance, experience etc.
Tracking individual strengths and weaknesses is the best way to determine high performance individuals whom would be crucial for the organization. Consistent performance appraisals make that information easily accessible when it is time to hand out new assignments
The ultimate objective of Performance management is to align individual performance with organizational performance. A culture that rewards performance is promoted in the organization to create a performance driven atmosphere and help employees reach their maximum potential. A well-oiled performance management system can help put both employees & the organisation on a path to success