Mahipal Nehra

2 years ago · 3 min. reading time · ~10 ·

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Why Performance Management should be your #1 priority?

Why Performance Management should be your #1 priority?

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What is Performance Management?

Performance management is a process of managing or reviewing an employee’s performance based on a few pre-decided factors. Regular engagement and rewarding help in better employee management. Rewarding i.e. hard-work recognition of employees can be anything, depending on companies.

Some of the common methods are appraisal and bonus. Practicing such processes at an organisation helps develop employee morale and productivity.

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The factors affecting employee performance review can be anything, starting from goal completion, colleague feedback, and manager feedback. This is also called degree feedback – one of the most efficient feedbacking procedures to date.

In short, performance management is a very important activity for keeping your employees engaged throughout. And employee engagement is the most crucial part of any business. Therefore, it says, “Performance management should always be your No. 1 priority!”

How can Performance management benefit your company and employees?

  • Let’s your employees know what performance is expected

  • Motivated workforce

  • Timely rewards to employees

  • Improved productivity

  • Aligned goals

  • Saves HR’s time on the appraisal process

  • Lower associated costs

These were some of the best reasons why you need a reliable performance management system. A modern and automated performance management system helps you conclude with the overall appraisal process in less time. Leave the old-school recognition method behind.

What are some prime features of an employee performance management system?

Automated tracking of employee performance

Tracking an employee’s performance has never been so easy. A performance appraisal system lets you keep track of your employees’ tasks and lets you know whether deadlines are being met or not. Accurate track of work and timely rewards motivates your workforce and makes them stay at organisation. How a performance appraisal system works and provides the best feedback is further explained in the blog.

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540 Degree feedback

The most important feature of an appraisal system! Degree feedback helps in obtaining accurate reviews/ remarks on employee performance. Different employee performance management system provides different layers of feedback. Some provide 360-degree feedback and some 540-degree. These degrees represent appointed departments to contribute to remarking. They are colleagues, managers, co-workers, and clients.

So, the 540-degree feedback ensures every required data reaches the system and delivers the best outcome.

Goal Setting and Tracking

The system encourages employees to work at their fullest and deliver the best results. The system also allows managers and their teammates i.e. employees to sit together and discuss milestones and targets to be fed in the system. The system then keeps a track of these projects and reminds them of deadlines. It, therefore, makes the target setting and achievement easier.

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Stress-free Appraisal Process

Employee performance management systems make it easy to define targets and follow them. At times, it happens that HR and managers are stuck at developing a performance tracking strategy. This consumes a lot of time and effort. Also, traditional methods do not guarantee the required results. Whilst, an automated performance management system makes it smooth for the HR department.

Easy Evaluation

The system only requires parameters to be fed at the earliest itself. Once, the grading parameters like attendance, work ethics, deadline follows, etc. are fed into the system, you are ready for the performance reading and hence appraisal. With proper grading factors and reviewing departments defined, it makes easy for HR to evaluate feedback.

Automated Reminders

Automated reminders and notifications let you not miss any important task. Any appraisal or meeting a deadline is very important for employers and employees respectively. The system will never let you miss your deadline and ensure the appraisal process is commenced and ends effectively.

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Discussed above were some of the best reasons why you should leave behind the old traditional method performance management and adopt a new modern automated system to deliver the best outcomes.

Organisations can now simply define performance parameters and grading factors for employees and sit back. The customizable appraisal system helps to conclude with the process effectively and on time. Managing the process has never been so simple ever before.


The real importance of an effective performance management system is now not hidden. The performance management does not only benefit the employer and HR about also the employees i.e. all the internal customers – the stakeholders.

The system indirectly lets you keep a track of employee engagement and educates you on what is making an employee lag. It helps you in taking further necessary measures. Employee management and time save at HR’s base are some best deliveries of performance management. All these points additionally leave no doubt in mind that performance management activity must be at the forefront of your priority list.

Revamp your performance management process now. Happy appraising!

Thanks for reading

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