People Innovation Excellence

Using Performance Management to Achieve Multiple Purposes – Part I

So performance management is mostly used for salary administration, performance feedback, and for learning about employee strengths and weaknesses. Overall, performance management can serve the following six purposes: strategic, administrative, informational, developmental, organizational maintenance, and documentation.

Strategic objectives

Performance management systems help top management achieve strategic business objectives. Performance management links the goals of individuals with the goals of their teams, which in turn are connected with the goals of the entire organization. And even if an individual isn’t able to reach his or her goals, the fact that performance management formally and explicitly links them to the team and the organization’s goals is very useful in communicating what are the most crucial business strategic initiatives.


Administrative objectives

Performance management is also useful for providing useful information used in making administrative decisions about employees. For example, these include decisions include 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. The government in Turkey mandates performance management systems in all public organizations in that country. The reason? They serve an important administrative purpose because they aim at preventing favoritism, corruption, and bribery, and send a clear message that administrative decisions should be impartial and based on merit.




Performance Management for Dummies

By Herman Aguinis, PhD

2019, John Wiley & Sons, Inc., Hoboken, New Jersey

Published at :
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