Performance of employees directly and exponentially affects the organizational effectiveness or performance. Hence employee performance needs to be accurately assessed and improved periodically. Performance Management System plays a crucial role in that process.
✓ Improvement in the employee performance results into the enhancement of organizational performance and effectiveness
✓ Employee performance gets accurately assessed
✓ Appraisal data can be used for various HR Functions like Training & Development, Rewards and compensation, Succession Planning etc.
✓ Employee motivation gets altered
✓ Minimize employee dissatisfaction and turnover