What Are The Purposes of Performance Management?
There are a number of reasons why it's useful to undertake performance management, provided it's done properly. If it's not done properly, there is no point in doing it, and in fact improper implementation can be damaging.
Let's face it. Performance management requires an investment of time and energy on the manager's part, so it stands to reason that there should be a return on that investment. One of the most important, and often neglected reasons to do it is that it results in the manager having to spend less time "managing", or micro-managing. Since one of the reasons we do performance management is to help employees understand what they should be doing, and how well they should be doing it, when it's done well, it allows employees to consult with their managers less frequently. They make less mistakes, since they are clear about their jobs and authority levels, and they can make more decisions on their own. The result? Less work for managers over the year.
Another reason, also often forgotten, is that performance management is a good tool to prevent problems from occurring during the year. Most people think performance management involves looking backwards, because they focus on the appraisal, but in fact, goal setting, and communication about performance all year long, helpls to identify barriers to performance before they impact on performance. The result? Better productivity, and less "fire-fighting" or dealing with performance problems after the fact.
There are additional reasons to do performance management. For a longer explanation see below.