FAQ

What are the 3 purposes of performance management?

Performance management is a process that helps organizations ensure that employees are working efficiently and effectively toward achieving the business’s goals. It has three primary purposes of performance management:

  • Goal setting

    The first purpose of performance management is to set clear and specific goals for employees. This involves defining what is expected of them, outlining the tasks and responsibilities they are accountable for, and setting measurable targets that they need to achieve. Clear goals provide employees with a sense of direction and purpose, and they also help managers to evaluate performance more objectively.

  • Performance monitoring

    The second purpose of performance management is to monitor employee performance regularly. This involves tracking progress toward goals, providing feedback, and identifying areas for improvement. Regular monitoring allows managers to catch problems early and address them before they become more significant issues. It also provides employees with ongoing feedback, which can help them to improve their performance and stay motivated.

  • Performance evaluation

    The third purpose of performance management is to evaluate employee performance formally. This involves conducting a comprehensive review of an employee’s performance over a specific period, typically annually or semi-annually. The evaluation process involves assessing the employee’s progress toward goals, reviewing their accomplishments, identifying areas for improvement, and setting new goals for the upcoming period. The evaluation provides managers with an opportunity to recognize and reward high-performing employees, and it also helps to identify areas for improvement and development.

The three primary purposes of performance management are goal setting, performance monitoring, and performance evaluation. These purposes work together to help organizations ensure that their employees are working efficiently and effectively toward achieving the business’s goals.

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