Performance management software focuses on workforce productivity, efficiency, and progress. Performance reviews should take place on a continuing basis at an administrative level. Reviews also facilitate medium-term and long-term performance forecasts at a strategic level. An effective performance management program must interact with other tools. Desirable features and goals of performance management software should include:
- Keeping employees motivated.
- Helping employees track their progress within the organization.
- helping employees plan their futures in the organization.
- eliminating task redundancy.
- Tying employee compensation to individual achievement.
If performance management software if implemented correctly with specific objectives tied to the strategic and operational plan, organisational performance outcomes will likely increase very quickly. If a CEO asks for a 3% increase sales, the objective would be cascaded down to every department, team and individual who can influence the increase in sales. Those who are successful at achieving this objective will generally get a favorable review. The Process of performance management drives organisational performance outcomes. employee that achieve the organisational goals are rewarded with favourable reviews and bonuses in line with their performance and contribution to the organisation.
Communication between the manager and the employee improves as communication occurs more frequently. Objectives can easily be adapted to continually changing conditions and priorities. This is an inclusive and collaborative process, which ensure that the employee has input and does not feel they have wasted the year. The employee works toward specific objectives that are relevant. If the organisation is using a performance management software product that has a diary, both the manager and the employee can be better prepared with relevant content to discuss. They have diary notes that relate to performance during the entire performance period. This raises confidence and reduces stress levels. Both parties feel more comfortable and they can have a content rich and factual discussion about performance.
When Performance reviews happen more frequently, the discussion centers on performance of objectives rather than being dominated by the employees needs. The needs of the business are discussed more frequently to achieve specific performance outcomes. This mean both the employee and manager communicate more effectively and achieve better outcomes. Emotionally charged discussions tend to be displaced by business focused discussions on achievement of objective outcomes. As expectation are modified when a performance management system is introduced, most organisations switch to defined performance periods. this mean that strategic and operational objectives are set at the beginning of the performance period. Formal performance review are then conducted quarterly or half yearly and enable management to direct and fine tune efforts in relation to the objectives.