Performance Management For Dummies

Chapter 19

Ten Reasons for Implementing Effective Performance Management

IN THIS CHAPTER

Benefits to those being evaluated

Benefits to those who evaluate the performance of others

Benefits to your organization

There are hundreds of reasons why your organization should have a state-of-the-science performance management system. If you need to convince others or even yourself about this need, you must consider these ten reasons first.

Six Useful Purposes

Performance management provides the following functions within organizations:

• It helps top management achieve strategic business objectives because they link the goals of individuals with the goals of their teams, which in turn are connected with the goals of the entire organization.
• It helps your organization in making administrative decisions about employees such as salary adjustments, promotions, employee retention or termination, recognition of top individual performance, identification of high-potential employees, identification of poor performers, layoffs, and merit increases.
• It helps your organization communicate the expectations of peers, supervisors, customers, and the organization, and it also conveys what aspects of ...