A performance management system tracks the performance of employees in a manner that is consistent and measurable. The system relies on a combination of technologies and methodologies to ensure people across the organization are aligned with – and contributing to – the strategic objectives of the business.
The system is collaborative, with managers and employees working together to set expectations, identify employee goals, define performance measurement, share employee performance reviews and appraisals, and provide feedback.
When properly defined and consistently applied, a performance management system increases overall workforce productivity. Employees are more invested in their work and turnover is minimized while revenue per employee is maximized.
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