A Performance Management System (PMS) is a mechanism for tracking performance across an organization in a consistent and measurable manner. It allows the company to ensure that employees and departments across the organization are working effectively towards achieving the business’ strategic goals.
Performance Management Systems help businesses achieve their organizational goals in an organized manner. They help ensure proper alignment through linking of objectives and facilitate effective communication throughout the organization. A well executed PMS leads to improved organizational performance, employee retention and loyalty, improved productivity, reduced communication barriers, clear accountabilities, and cost advantages. Key benefits of implementing a PMS are:
Efficient resource allocation
Data driven decisions
Early identification of potential risks
