Proper performance management helps one in tracking the performance of one’s employees and helps one in giving them justified appraisals.

Performance management can in a way help one in observing the capabilities of one’s employees, using their potential to the maximum and can also motivate employees to give in their best for the overall growth of the company.

But most of the time employees relate it only to the annual appraisal which is not right as performance management system is the record of an employees’ performance from the day she/ he joins an organization, till the last day of working. In addition to the annual increments, performance management system also includes the detailed account of one’s job so that an employee is clear from day one about the expectations of the organization from the position held by an employee.

Also, it involves the disseminating of information to the employee about the expected work standards, and the ways by which his/ her performance will be measured. Performance management system also includes the type of selection process that is followed by an organization to choose the appropriate employees for a particular job.

Conducting an effective orientation process, educating and training the employees and providing the information pertinent for the job is also a part of the performance management system. Employees need to know that they are on the right track, what are their strengths that can be used in a better manner to do the task and what are their limitations that they can improve upon.

This constant feedback can really help the employees and do come in the performance management system. In addition to the regular evaluation of the employee’s performance and communication of the same, one can also, provide some kind of training to help an employee overcome his/ her limitations.

An organization under the performance management system must reward the employees for the accomplishments, must set new goals and challenges for them, provide them with an opportunity of job rotation, and should provide them with good career growth opportunities, so that they are motivated towards self- development.

At the end, under performance management system, one must also, look into the reasons for why the employees leave an organization.