What is the importance and goals of a performance management system?

In business, performance management is vital to ensuring your company gets the most and the best quality work from its employees. There are numerous different types of performance management systems, but they are all designed to keep employees on task and to monitor their time and actions to ensure that the company is benefitting as much as possible from their work.
The importance of a performance management system is to make sure the company’s resources are being well used. Every employee’s time is a resource for the company, and they are being paid to perform various functions. If those functions are taking too long or if the employees are doing superfluous activities, those are examples of time theft and are areas where the company could be more productive or could save money.
There are several goals of a performance management system. The first goal is to track employees’ time. For hourly workers, this is used to directly assess their pay and often times is electronic (such as an ID swiping system that tracks when they’re in the facility). For salaried employees, it helps to monitor when they are in the office or when they’re working.
A second goal is to track the different projects employees are working on. It is useful to know how the time in the office is being spent. By breaking down this time, the company can see what each employee is doing and can also assess how much time and money is being spent on various projects. This is useful for accounting and record-keeping and also establishes the profitability of certain projects to asses whether they are valuable to perform again in the future.
The performance management system essentially tracks employees engagement and the time they spend on various activities to keep accurate records for the company. This ensures good performance and accurate accounting.