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The key duties of a Performance Manager may vary depending on the organization and the geographical location. They are responsible for monitoring and improving the overall employee performances. Since they are an integral part of the human resources department, they are also tasked with hiring and training the employees. In general, the main responsibilities of a Performance Manager include evaluating KPIs, monitoring employee performances by analyzing statistical and performance data, developing training materials, conducting interviews to assist the hiring managers, and so on. 

Having a Performance Manager is imperative to any organization’s success. Often, the hiring managers or team supervisors take up the role of Performance Managers in an organization. They understand the organization’s objectives and help select and train the best talent in the industry to achieve business goals. 

Performance Management is crucial for organizations to streamline employee performance and achieve immediate organizational goals. Here are the key reasons why Performance Management is important for every organization –

• Performance Management helps to motivate employees. It works as a positive reinforcement that their managers value them. Employees also become open to feedback and continually strive towards giving their best.

• The annual performance review keeps the employees updated on their performance, and managers can strategize on improving the business process. 

• Performance management supplements the financial reports and performance data every year. This helps managers keep individual records of employees and generate the performance graph throughout the years for review.

• With performance management, it becomes mandatory for managers to give constructive feedback to the employees and their overall performance in the organization. It helps employees identify skills required to do the job effectively. 

• It also plays a vital role in setting annual business goals for organizations. Supervisors and hiring managers can then hire specific talent and adhere to relevant development practices.

• Performance management makes it compulsory for managers to bring out appropriate solutions to enhance the organization’s overall performance. The managers can address both the positive and negative achievements of the employees. It also prepares employees to set the right expectations during the appraisal process.

There are various types of Performance Management based on review or appraisal systems. These include :

• Manager Performance Appraisal – This type of performance management involves the appraisal of the manager by collecting feedback from the employees.

• Technological Performance Appraisal – This system entails the identification of the technical expertise of the employees by the supervisor or the manager.

• Employee Self-assessment – In this system, the manager conducts discussions with the employees about their performance, and employees can compare their individual performances.

• General Appraisal – In this system of performance management, the manager and the employees communicate the yearly performance. They also discuss yearly goals, objectives, feedback, and new business goals.

• Project Evaluation Review – This system helps identify the employee performance at the workplace based on the projects. Employee performance is evaluated depending on the completion of each project and its outcome. The manager can also review potential candidates to assign new projects. 

• 360-degree Appraisal – In this performance management system, the supervisor or manager provides the performance evaluation of the peers.