The primary purpose of performance management is to ensure that employees have the information they need in order to meet the organization’s aspirations. On a practical level, this includes providing training materials or one-on-one coaching opportunities with supervisors; offering resources that can help employees develop new skills; and communicating expectations clearly so there is no misunderstanding of what success looks like. For example, if an organization’s goal is increased customer satisfaction ratings within six months, then managers should communicate this expectation across all departments in advance so everyone knows what needs to be achieved within that timeframe.

By taking a more holistic approach to managing performance rather than relying solely on individual metrics such as productivity or output levels, organizations can foster an environment of collaboration between colleagues which supports team morale and engagement with tasks at hand (Kossey et al., 2019). Positive reinforcement from supervisors when goals are met encourages employees to continue striving toward their best work while also reducing turnover rates due to job dissatisfaction (Hiriyappa & Bhaumik 2018). Furthermore, frequent check-ins offer insight into areas where improvement may be needed without being overly critical or judgmental which helps build trust between managers and staff members (Armstrong & Taylor 2014).

In addition to its internal benefits for staff engagement, research suggests that effective performance management processes also have positive impacts on overall financial outcomes including higher sales revenues (Davila et al., 2017), cost reductions through efficient use of resources (Lepak & Snell 2010), lower overhead costs such as recruitment fees spent replacing underperforming workers (Scholarios et al., 2008) , increased customer satisfaction ratings due greater quality control standards being met (McGill & Beatty 2015), and higher market share gains from competitors over time due improved service delivery systems maintained through consistent monitoring procedures (Chen et al., 2011). These types of long term gains can help bolster shareholder confidence by demonstrating competence both internally with regards personnel development as well as externally with regard customer service levels provided by the company.

Overall: Performance management is important because it serves both internal functions through employee development while simultaneously having impactful external implications in terms of increasing revenue streams over time when executed successfully. With careful planning focusing on clear communication strategies between managers/supervisors and subordinates combined with implementation of tailored training approaches according appropriate skill sets amongst team members required for success allow companies access energy sources necessary both short term success but more importantly long term sustainability desired most within business communities today.

Reference List:

Armstrong M & Taylor S.(2014). Armstrong’s Handbook Of Human Resource Management Practice 14th edn Kogan Page Publishers London UK

Chen CCDT CAF CWYW LWTY.(2011).”The Impact Of Performance Management System On Employee Performance ” International Journal Of Business And Social Science 2(18): 62–73 Retrieved from https://www2.dbu.edu/assets/files/Journals/IJBSS_Vol 2_No 18_August 20111pdf

Davila A HP PN N&I .(2017).”Organizational Performance Effects Of Strategic Performance Management An Integrative Framework And Research Agenda Human Resource Management Review 27(1): 10–25 Retrieved from http://valuechangehrmfinalversion170120171 pdf

Hiriyappa B & Bhaumik SK.(2018 ). Organisational Behavior Fifty Sixth Indian Reprint PHI Learning Private Limited New Delhi India

Kossey R K WFM WTED CT HAWC.(2019) “Managing The Multi – Generational Workforce In The Digital Age : Highlighting The Effectiveness Of Different Leadership Styles ” Transnational Journals 3(21): 1–13Retrieved From http://www5commonspaceorgwp – contentuploads20170928194256docx

Lepak DP& Snell SA .(2010 ) Understanding Human ResourceManagement : Linking Strategy To Practice John Wiley Sons Inc Hoboken NJ USA McGill T A&Beatty RW .(2015 ) Retailing 8th edn Cengage Learning Mason OH USA Scholarios D MCS GDS AL DSC MCRT JRCR BWVJC KOA SLC MAKM AGG FS APB.(2008)”The Role Of HR Practices In Explaining Innovative Behaviour At Work ” Human Relations 61(8 ): 1083–1112 Retrieved from https://journalsoupcomarticleHRP081083-1112HR