The Importance Of Performance Management

Performance management is a continuous process by which employees and managers work together in the planning, monitoring and reviewing an employees’ work objectives and overall contribution to the organisation. The key values, principles and competences needed to obtain and sustain organisational results are developed and promoted through the use of effective performance management systems (Sahoo and Mishra, 2012). The goal of this system is to help organisations define a set of measures that reflect their objectives and assess employee’s performance in relation to them (Vieira, O’Dwyer and Schneider, 2016). Performance management systems have been implemented as a means of managing and measuring the performance of individuals or teams by providing clear accountability and measures on which to assess performance (Becker, Antuar and Everett, 2011).

A performance management system provides opportunity for career growth and personal development through the use of training and learning initiatives. Training is the most significant way to influence behaviour and it has two objectives: to standardise behaviour by providing employees with missing skill sets and to up-skill employees and facilitate opportunities for greater challenge, growth and motivation (Adler, 2011). PMS’ gives employees line of sight by developing employee competencies in a manner aligned with the organization’s business goals (Cheng, Dainty and Moore, 2006). It gives employees and managers an equal