Performance management involves evaluating how a business is working toward its goal. This helps to ensure that a business meets all of its objectives, accomplishes its goals and increases overall employee strength.
Meeting goals is the ultimate purpose of performance management, but it can help with other areas of business. It works well as a preventative tool to stop problems from occurring. Business managers can look at past performance reports and see where issues arise. This helps them to set more reasonable goals that relates to the overall skills and abilities of their employees. Fewer problems increase productivity.