Performance Management Matters to a Business

Subject: Management
Pages: 2
Words: 531
Reading time:
2 min

The performance management ensures that the employees are fully integrated into the activities and planning processes of the business which in turn motivates them to even work extra harder. The inclusion of the employees into the whole process enables businesses to enhance efficiency in their production. Considering the crucial role that the employees play in businesses, engaging them in the overall performance management process has seen many firms rise considerably. The performance management, therefore, enables the firm to effectively tap the potentials and abilities of its staff.

The overall process which includes the monitoring and development stage where the desired traits are rated and the progress analyzed should be emphasized in a firm. Then the business should also design a proper and efficient way which it can award the best performers in order to boost their morale. This performance management process increases confidence in the staff members and consequently raises their output. It also enhances the decision-making process as communication gaps are bridged. Integration of the employees in the planning process gives them a clear picture of what is expected of them for the business objectives to be met.

The monitoring process on the other hand ensures that the tasks are completed in good time and using the budgeted resources. This stage, therefore, ensures that the firm efficiently utilizes the available resources to maximize its gains. The continuous monitoring program also enhances timely corrections as errors and shortcomings are detected on time. This also enables the firm to mitigate their loss capacities in good time thus raising their profitability level. Since the performance management practice aim at instilling the desired qualities into the employees, it helps to lessen the work of the management and supervisory team.

As the practice incorporate all the stakeholders within the firm, personal and professional growth is encouraged in all levels and departments. The managers are able to nurture and develop the employee’s talents and skills as training are undertaken are exhaustive. Close monitoring similarly enables the employees to improve on their shortcomings. As a result, it boosts the expansion and productivity improvement within the business. The individual rating of the employee’s performance makes them fully dedicate their time and energy towards attaining the set targets. The individual performance rating assists the employees in fully exploiting their strengths and weaknesses. Such identification assists the managers to understand what and how to assist their employees to either maintain or improve on their performances.

The firm should also learn to point out the employee’s strengths as they boost their morale and credibility. It is also important to note that the rewarding process enables the employees to remain focused at all times. As a result, the management team is able to meet and achieve its mission and financial goals within the stipulated period of time. The overall process also enables the firm to operate within the set budget as there is a continuous monitoring and evaluation process which prevents deviations. As the whole process involves the employees in the planning and decision-making process, the performance management does not receive resistance during its implementation process.