If you have been to a training program for newly-hired employees, chances are that you have encountered this statement: “People are our most important assets.” While it is true, people if not managed properly can also contribute to the business’ downfall. Performance management, therefore, is necessary to ensure that the organization’s employees perform to the best of their abilities. What is employee performance management and its benefits? Employee performance management is the process of creating a workplace that enables employees to perform with maximum efficiency. Some of its benefits include: Company’s Profitability/Direct Financial Gains – Competent workforce ensures maximum productivity thereby increasing sales while reducing costs. Enhanced Quality of Work Life/Motivated Workforce – By implementing standardized procedures, all employees are treated fairly and are rewarded accordingly. Improved Management Control – Organized system allows proper documentation and communication of results, thereby facilitating effective assessment of performance as well as giving accurate feedback to help employees succeed.