Final answer:
An effective performance management system can positively impact an organization and its employees by improving performance and providing recognition and rewards.
Step-by-step explanation:
An effective performance management system can have positive impacts on an organization and its employees in various ways.
1. Performance Improvement
By implementing an effective performance management system, organizations can identify areas where employees are lacking and provide them with the necessary support and resources to improve their performance. For example, if an employee is struggling with time management skills, the system can provide training and resources to help them develop better time management techniques. This not only enhances the individual employee's performance but also contributes to the overall productivity and success of the organization.
2. Recognition and Rewards
An effective performance management system allows managers to recognize and reward employees who consistently perform well. This can be done through various methods such as financial rewards, promotions, or public recognition. When employees are rewarded for their efforts, it boosts their morale, motivation, and job satisfaction. It also encourages other employees to strive for excellence, creating a positive and competitive work environment.