Performance Management System: An Important Link To Help Organizations Keep Employees Happy!

March is right around the corner and the pressure is once again on the managers, human resource personnel and employees to justify their viewpoints in the appraisal assessment. While managers have the pressure of boosting the morale of their team, employees have the strain of proving their worth to the organization. Effective performance assessment system must ensure a healthy balance between one’s contribution and their commitment towards their duties and organization. Managers have the onerous task of carrying out their managerial duties while boosting their team to give their best. In such a situation, it is not a wise task for organizations to expect the manager to concentrate and comprehend all the performance evaluation mechanisms.


To better justify our claim, let us consider a scenario where an organization of 500 employees is waiting for their performance to be evaluated. If we reasonably dedicate two hours to evaluate a particular employee, it would approximately account to 1000 hours of the human resources and managers. Assuming it costs the organization a meagre Rs. 1000 per hour to evaluate, it would cost an organization Rs. 10, 00,000 to complete one cycle of appraisals excluding the IT, space and other miscellaneous costs.

Owing to these mammoth costs for evaluation, it is time for every organization irrespective of their size to have an effective Performance Management System that would put a process into place to take care of the assessments. To give a better sense of evaluations, the Performance Management Systems of today use the conventional methodologies which are known to garner the best results. Be it the usage of the Bell Curve to find the average performance index or the use of Key Process Indicators (KPI) and Key Process Areas (KPA), the systems of today have covered all the facets that are imperative for organizations to evaluate and assess their employees. To better justify this point; here are three reasons why organizations must employ a performance management system at the earliest:

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  1. Check post For Core Objectives

Performance appraisals offer a reality check, both for the supervisors and the employees. Instead of having these reality checks happen once every year, a performance management system ensures the employees are aware of their performance and deliverables. The system also eases the task of the supervisor where one need not reiterate their objectives repeatedly. By having such a check post, organizations can expect supervisors and employees to work in tandem towards the organization’s goals.

  1. Foresighted Approach Towards Long-Terms Goals

With employees and supervisors working in tandem, organizations can expect to see a significant link between their contribution and the organization’s core objectives. Having employees focused towards their objectives while having the organization’s long-term goals in sight, supervisors and senior management have their work cut out for them. With the right performance management system, the organization can expect to see greater productivity from their supervisors and employees.

  1. Justifiable Outreach

Performance appraisals that are just and systematic do not leave any room for employee disappointment. With a considerable increment in job satisfaction, organizations can see their crème de la crème be loyal to the organization’s objectives. A domino effect that eventually leads to the company’s overall success is nothing short of a dream for the senior management of any organization.

By | 2018-03-19T12:43:42+00:00 March 17th, 2018|Uncategorized|0 Comments

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