Answer:
Performance monitoring is important because:
- Performance monitoring provides scope for modification, change and/or alteration of the existing performance management system.
- It helps in reviewing and correcting performance objectives as linked to mission and objectives of the organization.
- It identifies areas for competency improvement.
- It continually enhances performance of employees.
- It helps in realizing the full potential of employees and organization for excellence in performance.
Employees who are recognized and rewarded for their performance are more likely to be invested and engaged in their jobs and responsibilities. Regular performance management that spans the day to day can keep employees motivated, which will drive them to be more productive and invested in their tasks, all of which roll up to supporting organizational goals.
Performance management helps to empower employees. Managers and supervisors who connect with their employees about business happenings and goals give their employees a better sense of where they fit into the big picture. This kind of perspective can drive performance. When employees know why their job matters and how it fits into the overall goals of an organization, they are often both more motivated to perform better and also in ways that help the business reach milestones or align better with goals. For instance, if a finance professional knows that their job isn’t just to examine expense reports to prevent fraud and because that’s was required of the role, but also because greater fiduciary responsibility allows businesses to reinvest in technologies that could lead to business growth, promotions, and bonuses, that finance employee may be more motivated towards excellence in their role.
Continued and ongoing performance management gives managers and supervisors an opportunity to regularly assess how an employee is being used within the business. Asking questions like “are these job responsibilities the best use of this employee’s time and skills or are there other tasks they can pivot to create more value for the business?” and “are these job responsibilities necessary to move us closer to our business goals or are they just a continuation of doing things the way they’ve always been done?” Regular performance management can help employers understand if their employees have the right skill sets to be moved into more value-adding positions and also refine positions to better reflect work that helps to better meet the overall business goals.
Ongoing performance management can support better employer-employee relationships. More 1-on1 discussions can improve a boss-employer dynamic more than meeting once in a while or just annually to discuss an annual review and raise. Better relationships can lead to more engagement and also encourage employees to reach out to their boss if they have a question or want to make a suggestion – both of which can lead to the more effective realization of company goals.
Employees and managers who meet regularly to discuss employee goals and overall business objectives are able to define not just what the organizational goals are but also strategize around how the employee can best meet their goals – which in turn support company goals. Overall, effective employee performance management helps to better align how individual employees work together and in tandem to support organizational goals. If there is a question as to how an employee or role is effectively supporting company objectives, that’s usually a sign that HR and leadership should have a larger conversation regarding employee and roles.
