THE CONCEPT AND THE MEANING OF PERFORMANCE MANAGEMENT
Performance management is of paramount importance for organizations, serving as a comprehensive strategy to align individual and team efforts with overarching business goals. By setting clear expectations and providing regular feedback, performance management enhances productivity and efficiency. Moreover, it plays a pivotal role in employee development, offering insights into strengths and areas for improvement, thereby enabling personalized growth plans. The motivational impact of recognition and constructive feedback contributes to a positive work environment, fostering employee engagement and commitment. Performance management systems also aid in identifying training needs, ensuring that the workforce possesses the skills required for organizational success. Beyond individual development, fair and informed decision-making related to promotions and compensation is facilitated through transparent performance criteria, mitigating bias. Additionally, performance management supports succession planning by identifying and nurturing high-potential employees. Regular feedback loops within the system allow for real-time improvements, contributing to a culture of continuous learning. Overall, it serves as a communication tool that aligns organizational objectives, creates unity among employees, and establishes a foundation for sustained success.