Performance Management Software: What it Offers and What it Lacks

Organisations are always looking for ways of being more effective at evaluating and measuring performance. That’s because performance management helps to improve their bottom line, hence the need for performance management software. It allows them to align workforce and individual goals with organizational goals.

Performance management tools replace annual performance review processes with real-time tracking. These tools do what annual reviews can’t do. They allow organizations to adjust employee goals and expectations with the changing work conditions. Annual reviews, however, are said to be too focused on the past and not on forward-looking needs.

Performance management systems are overseen by the human resource department. They also fit under the large umbrella of talent management systems in the HR department. 

What Performance Management Software Have to Offer

If you recently began a startup, you probably think that a PMS isn’t necessary. In any case, you don’t have many people on your team. And managing such a small number of employees might seem doable with a few spreadsheets.

If you expect to grow, however, you’ll realize that a PMS is crucial. But how crucial is it? What does it have to offer?

It Empowers Organizations to Support Remote Teams

Technological advancements and the establishment of flexibility as non-negotiable sparked an incremental shift toward remote work. Include the global pandemic of COVID-19 and more organizations have transitioned to working from home as a result.

 As such, performance management strategies have become even more important. That’s because they empower managers to effectively support and monitor teams in a streamlined manner.

 Note that a move to remote working brings a dangerous “out of sight, out of mind” attitude. This has the ability to negatively impacts productivity and the engagement of employees.

That’s why you need the right tools under one roof to keep up to speed with remote employees. This shouldn’t only be in terms of their output but also in terms of their development and happiness.

 The management software helps to ensure that nobody gets overlooked. It also ensures effective communications and the organization ends up better connected.

It Ensures Regular Conversations and Feedback on Performance

Performance management software systems are not only meant to help keep tabs on how much an employee gets done. It also helps to keep team members connected and supported. As a result, the organisation ends up having a more natural and continuous flow of conversations and feedback. This helps improve collaboration and efficiency.

Real-time communication about tasks is constructive and helps to reduce productivity-hindering roadblocks. Regular feedback also helps to keep employees in the know. It improves autonomy and empowers team members to evaluate their progress and achievements.

When employees are kept informed about their performance, it makes them feel valued. It enables them to know where they stand in relation to their career development goals.

The benefits that are brought about by effective communication are far-reaching. It brings about enhanced motivation, improves staff retention, and accelerates learning and development. There’s also less tendency toward micromanagement.

Employee Autonomy

It’s important that organisations involve employees in their performance management processes. Employees can use the software to view their progress and set business goals.

The best performance management software is designed in a simple and self-explanatory way. It enables employees to feel included in the organization as they are involved in the process.

Performance management also gives employees autonomy in decision-making processes. Actively involving them in decision-making processes enables them to feel valued. 

Understanding the Strengths and Weaknesses of Employees

Always remember that no two employees are the same. Some may be great at one aspect of their responsibilities. Others may fail to meet your organization’s standards at performing tasks.

With an evaluation of individual performance data, you can quickly find areas where certain employees excel. This enables you to place them in positions that will allow them to capitalize on their strong suits. This way, they can contribute to positive outcomes.

Also, some employees’ performance tends to lag the team behind. Just like it is with employee strengths, the management software helps to identify weaknesses. Ideally, an employee will work to adjust their inefficiencies once they are aware of them. 

More Efficient Human Resource Teams

Human resource tasks can come with a lot of monotony. That’s especially when it comes to paperwork. This is thanks to the advent of digital file management and searchable databases on almost everything.

Performance management in HRM now allows HR teams to understand where databases are. With effective data collection, the performance management software can ease some of the burdens on HR departments. It frees them up to analyse data and provide better and objective feedback.

What Performance Management Software Lacks

Performance management software is widely used to boost performance. Thanks to technological advancements, HR teams don’t have to trawl through piles of paperwork. But this management software can also be lacking in certain aspects. That is what we’re discussing below.


Inadequacy of Formal Appraisal Systems

One problem with performance management software is that they’re too formal. These systems are inadequate considering that they are usually scheduled as an annual or bi-annual process. One that’s conducted using a cookie cutter-based system.

Over-reliance on solely formal appraisal systems is inadequate. Especially when it comes to timely and in-the-flow-of-work performance management. 

Lack of a Plan to Address Below Standard Performance

Note that highlighting performance gaps is of no value. Not unless there’s a plan to address those gaps.

Failure to have a performance improvement plan can result in a wasted performance management opportunity. Having a plan to address the gaps leads to enhanced organisational performance.


Wrong Design

The performance management system you choose must fit within the specific needs of your organization. It shouldn’t be a duplicate of a system design for a different business.

That’s why consultations with stakeholders in the organization are necessary. They help to ensure you get software that will help you meet your specific goals. The design of the software must be tried out on a pilot basis. This must happen before it’s rolled out. 



If you work in the HR department, you already know the importance of a PMS. You know that it’s a vital part of any organization’s growth strategy. Due to its importance, performance management is best handled with a delicate strategy. After all, how you manage teams and internal engagements will affect the retention rate. It will also affect their paths to leadership. 

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About the Author

Ronan Healy

Hi everyone. I'm part of the EuroSTAR team. I'm here to help you engage with the EuroSTAR Huddle Community and get the best out of your membership. Together with software testing experts, we have a range of webinars and eBooks for you to enjoy and we have lots of opportunities for you to come together online. If you have any thoughts about the community, please get in contact with me.
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