Trust, support and spirited collaboration are what bring teams together within the same organization. Managers are responsible for bridging gaps between departments, teams and employees to make sure everyone gets along well.

If the purpose and goal are shared, so should organizational efforts. This is where performance management enters the frame. The benefits of performance management for organizations are multifold. Not only is it essential for employee development but also helps in building meaningful relationships in the organization.

For any organization, leaders have to prepare first-time managers and existing managers continuously and regularly on how to give and receive feedback, use performance management systems and connect with their employees.


  1. Benefits Of Performance Management

  2. Managerial Success With Harappa

Benefits Of Performance Management

Organizations that look to employee development to achieve organizational goals invest in performance management systems. Performance management refers to assessing employee performance based on predetermined goals, standards and a code of conduct. There are different types of performance management systems that organizations use to suit their needs. Some of these are assessments based on key performance indicators like a quarterly target of monthly website visitors, self-assessments, or even HR reviews.

Let’s discuss some of the benefits of performance management:

  1. Employee Connect

To understand the advantages of performance management, it’s important to focus on the employee whose performance is being assessed. Firstly, it’s the employee who should stand to gain from a manager’s feedback. Connecting with employees is essential if managers want to help them improve as professionals. They can contribute more honestly if they know their seniors are invested in their learning.

  1. Retain Top Talent

When managers listen to their employees, they build rapport and lasting working relationships with them. This will help organizations retain top talent because employees will be more willing to voice what they need to do a better job. Organizations are no longer about just work, they’re about nurturing talent and helping each other grow to achieve organizational goals. Focusing on a shared vision and working together to achieve goals are some of the indirect advantages of performance management.

  1. Work On Employee Development

Performance management means identifying areas of improvement, assessing strengths and weaknesses and helping employees achieve peak performance. If a manager recognizes their employee’s need to learn a new skill on the job, performance management is the platform where they can make an actionable plan. Together, managers can work with employees to identify what skills will help them advance in their roles. This will eventually lead to improved performance and better results.

  1. Understand Employee Concerns

Employees often have concerns with regards to time management, workload, or communication barriers, among others. Benefits of a performance management system include being able to listen to your employees. When managers understand what their employees are struggling with, they’re better equipped to come up with solutions. Performance may be affected by reasons such as team conflicts. Navigating these conversations and finding solutions is a key aspect of performance management.

  1. Communicate Expectations

Managers can use this opportunity to communicate or revisit their expectations from employees. It’s important to keep a check on whether employees are meeting targets or are on the right track. They may have lost sight due to a lack of guidance or motivation. Communicating expectations helps them reassess their roles and responsibilities, examine their work style and change things that need to be improved.

Informing managers of the benefits of a performance management system gives them a jumping-off point for their conversations with their teams. But there are both advantages and disadvantages of performance management.

Here are some disadvantages of performance management:

  1. It may be difficult to keep all biases in check during performance management. The reviewer’s own opinions may cloud the overall results of the performance review.

  2. Employees may be reluctant to talk about things like conflicts or their weaknesses unless their manager is willing to listen objectively.

  3. If performance management isn’t done frequently, it may not reap the desired results.

Weighing the pros and cons, understanding the importance of performance management will make the process more effective.

Managerial Success With Harappa

Employees recently entering managerial roles need guidance and mentorships to manage teams. When it’s time for performance appraisals, they need the proper tools, skills and mindset to communicate with their employees. Harappa’s First Time Manager Program offers customized learning pathways to suit your business needs. An online-first, blended learning journey gives our learners–your employees–a chance to study academically robust frameworks and concepts to upskill. We believe in transforming talent to achieve excellent results.

Explore Harappa Diaries to learn more about topics such as Steps Of Performance AppraisalWhat Is A Performance Management CycleTypes Of Performance Management Systems and Performance Management Objectives that will help organizations tap into their employee’s potential.

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