Performance Management

How online performance appraisal system can be beneficial to an organization?

The secret behind an organisation achieving a greater level of success is its robust performance management. It includes the various processes that it puts into place in order to measure and reward the effort of its employees for meeting and exceeding the expected goals. The key to your organisation outperforming your competitors is to improve the morale of your employees, increase their overall productivity, and create a sense of loyalty amongst them through performance management.

For many managers (and their employees), managing employee performance and boosting employee morale are mutually exclusive concepts. But what if the opposite were true? What if properly managing employee performance is actually one of the best ways to improve employee morale? If you’re not convinced, maybe you aren’t familiar with the ways performance management software can be your not-so-secret ace in the hole when it comes to improving employee morale.

Let’s take a closer look.


Performance management may have a bad reputation in the minds of employees because of how their reviews may have been conducted in the past. There aren’t many employees who enjoy having a quarterly, or yearly, performance review looming over their head for months on end with little or no communication in-between. It can add stress to their everyday life and make them feel unprepared for the appraisal itself. But through performance management software an employee can track the past record and thus reducing stress as it can help them measure the performance.


If your employees aren’t engaged, the organization suffers from top to bottom. Disengage employees waste potential and are less loyal to the company. So, how do you go about increasing engagement levels with performance management software? It’s important to note, however, that engaged employees want more than a paycheck—they want to feel valued. Take time to really listen to their ideas and empower them to achieve the goals they may have set for themselves (outside of those coming directly from management).


Dashboards built into a performance management tool can help managers effectively communicate performance results and give suggestions for development and improvement to every employee. It’s not just the managers benefiting here, however. Employees can use the dashboard to gain insight into how their achievements are being valued. And as we already know, feeling valued goes a long way towards an employee’s level of engagement.


In order to retain an organisation’s top talent and drive organisational performance which exceeds all expectations, the pay for performance strategy is one of the keys to achieving the same. This strategy aligns the employees with the goals and objectives of an organisation and motivates and rewards the ace performers, while it continues to develop the under performers to becoming valuable assets for the organisation. Employees need to know that if his or her performance exceeds or meets expectations, he or she will be duly rewarded by appropriate compensation via bonuses, pay raises or rewards for all their hard work. The pay for performance compensation structure encourages and motivates the employees to work individually or even as a group to achieve the common goal.


Another key piece of value that comes from having the right technology is mobility. Allowing them to use a technology that is mobile, intuitive, and user-friendly is a great way to demonstrate the value we place on them. Although not yet mainstream, mobile access is important because it encourages managers and employees to assess performance on-the-fly when they see/think about it as well as when it is convenient.

Finally, the numbers speak, which is why the growth in business or the lack of it must be checked regularly to get a true picture of how the employee or employees have been performing. Having the right means and resources to get a grip on performance of employees is a direct route to achieving success in business, which is why it is important to have a realistic view of how the employees have been faring at their job.

factoHR is one such HR and Payroll software where you can track the performance of an employee. KPI can help measure the performance of an employee. factoHR Payroll & HR Software links Payroll with KPI to evaluate salary based of the performance. It visually depicts the performance of an individual, specific department or organization. It gives your entire organization insights into the current performance.

You can download sample format of KPI from the below link :

To know more about factoHR – Payroll & HR Software, please contact +91 782 000 3100 or visit

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Kinjal Oza

Kinjal Oza is content editor and digital marketer at factoHR. She writes about search, selection and implementation of trending HRMS technologies. She is a part of the business community through factoHR’s social media network. She helps factoHR to keep up to date with latest digital trends.