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admin August 28, 2018 0 Comments

5 Shocking benefits of a Performance Management System


Before analyzing the importance of a Performance Management System in your organization, let us understand what it is all about. A performance management system enhances the performance of your organization by administering the efficiency of your employees in order to make sure that your organizational goals are achieved.

PMS has been redefined by several companies which are making full use of its benefits. Accenture, Facebook and Microsoft are some of the companies that rely on PMS completely.

When talking about PMS, Microsoft’s ex-vice president Lisa Brummel said that “Our new approach will make it easier for managers and leaders to allocate rewards in a manner that reflects the unique contributions of their employees and teams”. She considered it to be a great blessing as the system gave them a clear blueprint of what’s happening in their company.

Accenture’s Chief Leadership & Human Resources Officer Miss. Ellyn Shook also expressed her satisfaction about PMS and how it helped Accenture.

Now let’s look at how it assists an organization.

Employee Skill Set

The skillset of your employees is quite important to analyze because of the fact that some may excel, and some may lag behind. If you have an active performance management system in your organization, you will be able to identify the skill gaps and prepare your employees for giving their best. Essentially, it addresses all the concerns and problems that are related to employee development.

Let us take the example of an American Pharmaceutical company called Eli Lilly, which was one of the best pharmaceutical companies in the world. Eli Lilly states that the approach of PMS in their organization has strengthened and augured the skill set of several employees and supervisors.


Equality is augmented in your organization when you have a functional performance management system. It creates a sense of fairness in your organization’s atmosphere and is the best way to communicate with your employees.

Employee Motivation

A Performance management system serves as a huge motivation booster for employees as it provides them with the happiness of getting rewarded for their efficiency. Almost all organizations have a program that rewards their employees through incentives, bonuses, and certificates. This proves to be very effective and boosts the morale of the employees.

Accenture was one organization which focused on employee motivation and to implement PMS, they abandoned their annual review. One of the researchers within the firm spoke about the company’s decision of implementing PMS “Employees that do best in performance management systems tend to be the employees that are the most narcissistic and self-promoting.” This statement clearly meant that Accenture considers PMS to be their future guidance in terms of getting accurate statistics.

Firing underperforming employees

Having an active performance management system in your organization helps you eliminate underperforming employees whose productivity is minimal. It also allows organizations to monitor each and every employee’s performance and charts their productivity. The presence of employees that contribute little to the organization can lower the morale of other efficient employees. But if you have a performance management system, you will be able to let go of such non-performing employees with empathy.

Adobe is one among the many organizations that have used PMS to find out where the productivity is less. They have already generated the statistics to prove that regular feedback and check-ins make sense. PMS has helped Adobe take tough decisions on employees who struggle with performance issues.

Organization Goals 

Setting objectives for your organization should be your primary goal and that’s exactly what a performance management system helps you to do. If you want to extract productivity from your employees, you need to make sure that they are clear about what their objectives are. There have been many organizations which have shut down after its initial few years because of its decline. The main reason behind such a downfall is because of the organization which function without a particular goal or aim.


The world has evolved drastically and has seen so many changes that one would have never expected. But such changes have made humanity better and has helped it progress rapidly. One such modern technicality is the performance management system, which has proved to be dynamic for organizations. We at Align Associates provide a top-quality performance management system for organizations to assist them in several dimensions.

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