What is the primary purpose of performance management in an organization?

The primary purpose of performance management in an organization is to align employee performance with organizational goals. This approach ensures that employees understand their roles within the larger context of the organization's objectives, enabling them to contribute effectively to achieving those goals. By setting clear expectations, providing regular feedback, and facilitating professional development, organizations can enhance employee engagement and productivity. When employees are aware of how their individual contributions impact the overall success of the organization, it fosters a sense of purpose and motivation.

The alignment of individual performance with organizational objectives is fundamental to driving overall performance and ensuring that resources are utilized effectively to achieve strategic priorities. This aligns the efforts of employees across all levels and functions, creates a cohesive work environment, and ultimately supports the organization's mission and vision.