What is a Performance Appraisal SystemPerformance management system is an IT solution devised for computerized assessment of employees daily work and conduct. It creates a comprehensive list of attributes based on which an employees performance is analysed. The performance management process usually incorporates things such as missions, goals, daily reporting, achievements, incoming, outgoing, etc.Most Common Features of Performance Management SystemSetting Dynamic Goals amp ObjectivesnbspEmployee performance Management Solution enables departments to communicate with HR teams to set up objectives and goals for employees to work on within a certified time frame. Their performance will be assessed based on the completion of these objectives.Align employee goals with organization goalsnbspPerformance management software facilitates a dual progress cycle where personal goals of employees are noted, and it is adjusted in a way where it aligns with the organizations objectives. This allows a cohesive progress in both the organizations and an employees growth curve.Setting clear measurements metricsnbspFor companies to quantify something as abstract as an employees performance, it is required to have a strong, rigid, and a well-defined frame of reference. Various departments can set their key objectives for assessment and the scale for performance in the appraisal system and work along seamlessly.Performance AssessmentnbspPerformance management system enables companies to track and assess the achievement of employees and keep a record of it over time for thorough evaluation during appraisal cycle.Real-time feedback mechanismnbspPerformance management software introduces real-time feedback system that allows managers to file employee review at any-time. It is very helpful for departments that have a daily reporting system or project-styled working. It accumulates real-time feedback to create a final comprehensive report.Performance ReviewnbspThe performance appraisal system generates a cumulative report on employees workflow report. The software assesses the performance based on key metrics and starts mapping their progress for the further review process and appraisal.Achievement RecognitionnbspA high-quality performance management software automatically highlights the high performing employees based on their regular reporting. It ensures that companies dont skip on any employees contribution to the overall growth.Creating development plansnbspHR teams can create plans for employee improvement through an efficient planning module. It allows companies to create developmental plans where employees actions are accounted for taking initiatives and solving problems.Benefits of Performance Management System for Small BusinessTime SavingnbspIt saves time and reduces conflicts for managers in assessment of their employees performance.Clearer Objective HandlingnbspThe performance management solution ensures that all members of an organization understand their goals and objectives with transparency.Creating OpportunitiesnbspEmployee performance management system assists in creating developmental opportunities for every employee. HR teams can create specialized tasks for users and track its completion through the software.Goal AlignmentnbspPerformance appraisal system enables companies to create a flexible working system that facilitates the growth of both employees and the organization.Out of Sight Not Out of MindnbspPerformance management system helps in recognizing any good performance in an organization.Enhanced InteractionnbspIt establishes clear-cut performance objectives by enabling an open communication and a joint dialogue.Types of Performance Appraisal Methods360-Degree AppraisalnbspThis system enables companies to conduct feedback survey from employers about other employees.GradingnbspManagers can perform a robust and very detailed report on employees performance on different attributes like communication, attention span, teamwork, initiative drive, etc.Behaviour-oriented AppraisalnbspThis form of appraisal system uses employee character assessment on factors such as creativity, extroversion, confidence, personality, etc.Manager Performance AppraisalnbspEvaluation of departmentproject managers that takes feedback from both clients and team members.General AppraisalnbspThis draws in consistent interaction between manager and employee all year long.Straight ranking AppraisalsnbspCompanies can assess employee performance with comparison to each other and rank it sequentially from worst to best.Key Elements of a Performance Management ProcessHere are key elements for a highly efficient performance management processDevising and Expectation FixturenbspA first-rate Performance Management Process allows users to set the goals and targets within a defined time frame which are to be strictly followed.Workflow MonitoringnbspThe performance management solution enables managers and HR teams to monitor the daily worknbspof an employee and check if they are meeting their daily targetsgoals.Developmental Potential and RangenbspOnce the monitoring is finished, an employee performance management software analyses whether the employee is taking more initiative and taking additional side projects and work.Timely ReportingnbspBased on the above-mentioned factors, the performance management process solution generates quantified reports on employees achievements.Rewards and CompensationnbspOnce the analysis is completed, performance management software helps in devising compensation and rewards for the employees based on their performance.