A good performance management system always works in improving the performance of an organization. An effective performance management system (PMS) plays an important role in managing the organization performance. performance management system contributes in organizational benefits, employee benefits and manager’s benefits and has a positive influence on the job satisfaction and loyalty of the employees. A well managed performance management system has clearly defined goals and regular assessment of performance of all individual employees and hence helps in developing training and development plans required for the employees.
A well managed performance management system plays an important role in managing the performance in an organization by:
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