What is the primary purpose of performance management?

The primary purpose of performance management is to improve employee performance while ensuring that individual goals align with the overall objectives of the organization. This process involves setting clear expectations, providing ongoing feedback, and conducting formal performance appraisals, all aimed at enhancing employee productivity and contribution to the company’s success.

By focusing on aligning employee performance with organizational goals, performance management helps create a cohesive work environment where employees understand how their work impacts the larger mission of the organization. This alignment boosts motivation and engagement, leading to better performance outcomes.

While assessing employee satisfaction, evaluating HR policy effectiveness, and increasing retention rates are important aspects of human resource management, they are secondary to the primary aim of enhancing performance and alignment with organizational objectives. Performance management directly targets and influences the quality of work produced, making it a crucial process for both employees and the organization as a whole.