Performance management is the process of managing a set of activities and outputs to effectively and efficiently meet an organisation’s goals. Performance management can focus on the performance of an organization, a department, an employee, or the processes used to manage particular tasks.
Performance Management, when administered correctly has the following benefits:
Direct financial gain
• Grows sales;
• Reduces costs in the organisation &
• Aligns the organisation directly behind the strategic goals.
• Optimises incentive plans to specify goals for over achievement, not just business as usual;
• Improves employee engagement because everyone understands how they are directly contributing to the organisations high level goals;
• Creates transparency in achievement of goals;
• Creates high confidence in bonus payment processes &
• Professional development programs are better aligned directly to achieving business level goals.
Improved management control
• Flexible, responsive to management needs;
• Simplifies communication of strategic goals &
• Provides well documented and communicated process documentation.