Adopting a Performance Management System (PMS) confers strategic advantage that makes the organization competitive and responsive. In connecting the performance of employees with business results, PMS aligns each function to contribute toward the strategic focus of the organization. It stimulates goal-setting mechanisms like SMART goals and ongoing monitoring of performance that result in clearer and more aligned teams. PMS also supports a data-driven approach to talent management by capturing performance trends and providing insights into team strengths, leadership prospects, and areas of support needed. Such information is priceless when making succession plans, restructuring teams, or initiating development programs. PMS also creates a feedback-intensive culture, with continuous conversation leading to flexibility, learning, and a combined focus on success. In a fast-changing market, such alignment becomes fundamental for long-term development.
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