Performance Management Applications

Written by Jacey Harmon
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A performance management system is a great way for an organization to track its operation. Unlike an appraisal system, where employees are generally the focus, performance management can be used to measure every aspect of a company. Employees are still the main focus of most performance management systems. Performance systems can be used, however, to measure many more areas of an organization.

Uses for Performance Management

As stated above, the main focus of a performance management system will be on employees. Performance systems can be used to translate company goals into a per employee basis. For example, a company has a goal to increase production by 15 percent during the fiscal year. Performance management will break down a goal into each employee's level of responsibility. Through periodic measurement, employees and supervisors will have a clear idea if the goal will be accomplished.

Performance management is a great way to compare employees. Since performance management is results based, it is a useful for supervisors to identify quality or troubled employees. An employee that is creating outstanding results can be easily identified, and rewarded, through performance management. Conversely, an employee that is having trouble can be identified, and the necessary steps can be taken to rectify the situation.

Similar to tracking individual employees, performance management can measure and compare departments. This is especially useful for large organizations that have a multitude of departments. Performance management can be used to create sound financial models. By gauging past results of a company's operations, executives can create models based on historical facts. Performance management is a great tool executives can use to keep stakeholders informed of the company's progress. Clear visibility is important for investors to make sound decisions as to what to do with their stake in a company.


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