Components of the performance management system will comprise:

1) Policy and guidelines
2) Job description and  mission
3) Work objectives
4) Performance evaluation
5) Appraisal record

 

Some of the benefits of having a good performance management system include:

 

Financial gains

i. Grow in sales
ii. Reduction in costs
iii. Prevent projects’ cost overrun
iv. Align the organization behind top management
v. Reduce time it takes to create strategic or operational changes

 

Motivated workforce

i. Improves employees’ engagement because understands how they are directly contributing to the organizations’’ achievement
ii. Creates transparency in achievement of goals

Improved management control

i. It flexible and responsible to management needs
ii. Simplifies communication of strategic goals
iii. Provides well documented and communicated process documentation