Benifits of perfermance management

Benefits of performance management
Managing employee or system performance and aligning their objectives facilitates the effective delivery of strategic and operational goals. There is a clear and immediate correlation between using performance management programs or software and improved business and organizational results.[citation needed]
For employee performance management, using integrated software, rather than a spreadsheet based recording system, may deliver a significant return on investment through a range of direct and indirect sales benefits, operational efficiency benefits and by unlocking the latent potential in every employees work day (i.e. the time they spend not actually doing their job). Benefits may include:
Direct financial gain,
• Grow sales
• Reduce costs in the organization
• Stop project overruns
• Aligns the organization directly behind the CEO's goals
• Decreases the time it takes to create strategic or operational changes by communicating the changes through a new set of goals
Motivated workforce
• Optimizes incentive plans to specific goals for over achievement, not just business as usual
• Improves employee engagement because everyone understands how they are directly contributing to the organizations high level goals
• Create transparency in achievement of goals
• High confidence in bonus payment process
• Professional development programs are better aligned directly to achieving business level goals
Improved management control
• Flexible, responsive to management needs
• Displays data relationships
• Helps audit / comply with legislative requirement
• Simplifies communication of strategic goals scenario planning
• Provides well documented and communicated process documentation
Organizational Development[edit source | editbeta]
In organizational development (OD), performance can be thought of as Actual Results vs Desired Results. Any discrepancy, where Actual is less than Desired, could constitute the performance