What is a PMS?
Performance management system is the systematic approach to measure the performance of employees. It is a process through which the organization aligns their mission, goals and objectives with available resources (e.g. Manpower, material etc), systems and set the priorities.

Why are they Important?
Effective performance management provides an avenue through which both the employer and the employee exchange feedback. PMS also encourages organizations to reward and recognize their employees. Lack of recognition is a big reason some employees leave a job and look for another. They want to be appreciated for their hard work. In addition to the clarity, the ability to share feedback, and the additional training when needed, rewards and recognition can play an important role in employee retention.

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How will it add Value to the Business?
The system of performance management helps align individual goals with company objectives, encourages continuous feedback, and provides instant reports. With constant access to the dynamics of the employees and regular insights, the management can make informed decisions regarding performance appraisal, rewards and recognition, training and development. Most importantly, management can assess the performance of individuals, the organization, and decide if any interventions are needed to correct course. Without a structured system, such proactive decision making is extremely difficult.