A performance management system is a system that is used to make the performance measurable.
The objectives and key result areas are set for each employee in the software. The same is done to align the organisational goals and objectives with the goals of the team and employees. The system is used to provide clarity about goals and expectations. It is very useful to gauge competency, knowledge gaps, and skills. It helps in reducing the conflicts and misunderstandings between the employees.
The system can be used for a single department or the whole organisation. It serves various purposes in the company, which are strategic, administrative and developmental in nature. This also helps in better communication, organisational maintenance, and documentation.