Free Resource: The Ultimate Guide to Employee Rewards & Recognition.
Download Now

5 Major Objectives Of Performance Management

4 min read
Last Updated on 06 April, 2021
5 Major Objectives Of Performance Management

You are probably here to gain insights into the objectives of performance management. Then you might be aware of what performance management actually means.

To the uninitiated, performance management is simply described as:

An ongoing process that seeks to continuously identify, measure and develop the performance of the workforce.

Chances are that your organizational performance is not as good as it should have been.

Also, your existing performance management system is doing nothing to elevate employee performance.

Instead of kicking your performance management system to the curb, just revamp it.

The first step in establishing a performance management system that actually works is to understand the objectives behind it.

Objectives Of Performance Management System

Here are the 5 major objectives of performance management system:

1. Setting and defining goals to fulfill organizational objectives

Goal setting is the most lucrative ways for initiating better performance among employees.

It has been constantly demonstrated that effective goal setting:

  • Allows employees to focus on what’s important.
  • Alignment of individual objectives with the business objectives.
  • Optimizes employees’ individual performance.
  • Helps to identify the key result areas and work upon improving it.

An efficient performance management system will place goal setting as one of its integral requirements.

As a manager, set goals which benefit both- employee performance and business performance.

Related article: Tips For Setting Effective SMART Goals

2. Setting the right expectations for managers and employees

An efficient performance management system will attempt to set clear expectations from both managers and employees.

As a manager, it’s crucial that you place manageable expectations from your employee.

Don’t expect a poor performer to start giving good results right away. Or a star performer to stay consistent every other week.

Similarly holding managers to high expectations will only bring in poor management decisions.

To set expectations that’ll actually bring in some results:

  • Define the expectations of your employees in clear terms. Let employees know exactly what is your expectations from them.
  • Back up the reasoning behind the expectation. Explain how these expectations will help in fulfilling the business objectives.
  • Document expectations. Don’t let it be a word by mouth interaction. Have a specific spreadsheet or document about what to do and who is responsible for it. You might want to use a tool such as Airtable or pick one of the many Airtable alternatives that'd be a better fit for your business.
  • Once employees know of their own roles, responsibilities, and accountabilities they are more likely to be more consistent and productive.

This will facilitate better business performance. Furthermore, it will encourage the personal development of the employee.

3. Effective communication between individuals and teams

Changing workplace dynamics is bringing a cultural shift to today’s workplace. Consequently, communication has started playing an essential part in it.

A company with a good culture of communication results in employees who are engaged and alignment of individual objectives with business objectives.

It is essential that team members know what their other team members are up to- their objectives, succession planning, and ideas- to fulfill the project.

A team which lacks in communication among its team members lack the bonding that is ideally required in a high performing team.

Some tips to build a communication active environment:

  • Firstly team leaders or managers should take out the time to indulge in one-on-one interactions with the team members.
  • Continuous feedback and coaching to build a workforce with varied skills to foster further career development. One way to do this is through performance appraisals or performance reviews.
  • Additionally, conduct frequent team building activities.
  • Promote collaboration and communication as an essential part of your workplace culture.
  • Also, use appropriate and helpful business communication tools.

4. Set Performance Standards

The most important objectives of performance management are to set performance standards.

An organization should set performance standards and performance plans for evaluating employee performance.

Every job has certain performance standards that has to be met. Failure to accomplish the performance standards can mean the following things:

  • A lack of effort on the employees’ part.
  • Usually having set more unrealistic standards for the said job.
  • Consequently, not enough resources were available to complete the task.
  • In particular, a failure of cooperation or collaboration from the team or manager.

Here’s the thing.

You might never know what the reason for failure is without any performance management system.

An effective performance management system will be able to highlight what’s lacking and what deserves credit.

The strengths and weaknesses of your company will become more evident and hence easier to improve or rectify.

5. Determining individual training and performance plans

Another essential objective of a performance management system does is to identify the training and development needs of its workforce.

It promotes personal growth and advancement in the career of the employees by helping them acquire the desired knowledge and skills.

A well-executed performance plan provides your employees with personal development opportunities on how to increase their skills.

Here’s how you can create an effective employee performance plan to foster career development:

  • Firstly, ask your employees on what skills, training or course they require to execute their job perfectly.
  • Then create a training plan and budget.
  • Additionally, decide how can the new training skills be applied in some key result areas.
  • Lastly, set up some organizational objectives to apply these new found skills.

Before You Go

An efficient performance management system can bring a lot to the table. Getting to know the objectives of performance management is a tiny but essential part of it.

The overall objective of performance management is to enhance the:

  • Individual objectives of employees along with organizational objectives.
  • Also, enhance the skills and personal development of employees. Mainly through the help of managers and leaders.
  • Additionally, encourage work that helps in fulfilling business goals.

Do you have any other objectives of performance management which you want to share? Tell us in the comments below!

This article is written by Barasha Medhi who is a part of the marketing team at Vantage Circle. Barasha can be found either searching for interesting HR buzzwords to write about or looking at pictures of cozy Bel Air mansions. For any related queries, contact