What are the main features of a performance management system?

  • Last Updated : August 23, 2023
  • 3 Min Read
What to look for in Performance Management System

Conducting performance reviews regularly can seem like a herculean task for the teams in charge. The entire process of deciding the performance modules you use to evaluate employee performance, conducting self-reviews, finalizing raises, and exchanging feedback can be tedious and time-consuming. That's why it's essential to shift to a performance management system that simplifies the process of conducting performance reviews and facilitates fair performance decisions. If you haven't implemented a performance management system for your organization and are looking to invest in one, here are five main features to look for:

  • Customizable settings

Every organization will have its own way of running performance appraisals. By doing away with rigid performance systems and selecting a modern option, you can run performance reviews just the way you want. As a performance system administrator, you should be able to select the performance modules that you wish to use to evaluate employee performance, rename performance terminologies, decide on the evaluators, choose the rating type, and extend review periods. Overall, the system should work the way you want it to work.

  • Performance modules

The performance management system that you select should support different performance modules so that you can evaluate employee performance fairly. Most performance management systems support performance modules like goals, key result areas (KRAs), skillsets, and competencies to help organizations track employee performance. For instance, with the goals module, organizations set clear goals for their employees during the beginning of their performance period. This way, it's easy for them to track how effectively employees have progressed toward their goals and offer feedback. Some systems let you define KRAs and set suitable goals for each one. For competencies, you can assign a weight for each one and provide ratings to employees based on those metrics.  

  • Self-appraisals

Self-appraisals are a huge part of the performance review process for many organizations, since they identify how employees perceive their own work. After implementing a performance management system, you don't want to deal with dozens of back-and-forth emails regrading the necessary forms, reminders, and replies to common questions. Instead, it's good to go for a system that supports self-appraisals. Once you enable that module, employees will be able to log in to their self-service portal and add their self-appraisal. All you have to do is define the deadline and upload a template with the relevant questions.

  • Multi-rater feedback

Having multi-rater feedback as part of your appraisal process can help managers consider different perspectives and evaluate employee performance without any bias by considering different perspectives. Once the multi-rater feedback module is enabled, the necessary parties can select the peers and subordinates who will evaluate an employee's performance. Those selected will then be able to provide their feedback about the employee. Reviewers can access this feedback through the system itself.

  • Performance reports

While selecting your performance management system, it's best to select one that comes with a variety of performance reports. This will provide you with a clear picture of each employee's performance. For instance, if you are using goals to track employee performance, the goals report can give you insights into how employees are progressing. Similarly, the feedback report can provide you with insights into the positive and negative feedback received by your employees. Getting a consolidated picture of all the essential aspects of the performance appraisal process can help you make better decisions.

Choosing the best performance management system

When choosing a performance management system for your organization, get a clear idea about how you want your appraisal process to look so that you can select an approach that aligns well with your organizational needs. We hope this blog post gave you a deeper look into the main features of a performance management system!

Zoho People's HRMS comes with a built-in performance management system that has all the above-mentioned features to help organizations streamline the entire appraisal process. Learn more about Zoho People's performance management system.


  • tarika

    Content Specialist at Zoho People

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