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Know about Performance Management

Updated in November - 2025ย |ย Subscribe to watch greytHR how-to video

As an organization grows, managing employee performance effectively becomes important. However, it does not have to be complicated.ย 

Performance Management System (PMS) can simplify managing employee performances by helping them stay motivated and also aligned with the company's goals. From goal setting to reviews, the system does it all, so employees can focus on delivering great results.

greytHR's Performance Management System(PMS)

Performance Management is a software that helps organizations track, measure, and improve employee performance by setting clear objectives and giving regular feedback. It is a digital guide to performance tracking and development, which ensures everyone is working towards a common goal. It is also known as a performance evaluation or performance appraisal system.

Performance Management may be referred to differently in various organizations such as KRA (Key Result Areas) and KPI (Key Performance Indicators). In greytHR, we refer to KRAs as Goal Plans that define the key areas of focus and the KPIs as Reviews that track the progress within those areas.ย 

Benefits of Performance Management

  • Set specific, measurable goals so employees know what is expected.

  • Provide timely feedback for quick adjustments and growth.

  • Align work with goals and recognize achievements to boost motivation.

  • Use stored data for smooth, transparent reviews and promotions.

  • Save time for strategic tasks by automating performance management.

What does greytHR Performance Management offer?ย 

greytHR's PMS simplifies performance evaluations with goal setting, tracking, feedback, and customizable reviews. It aligns employee performance with business goals and integrates outcomes with rewards, fostering continuous improvement through insights and reports.

Get started with Performance Management on greytHR

A quick glimpse of greytHR Performance Management

Get started with greytHR Performance Management in three simple steps:

  1. Set up performance period

  2. Create goal plan

  3. Create review cycles

  4. Create 360ยฐ feedback

Frequently Asked Questions:

What is the purpose of a Performance Management System (PMS)?

A Performance Management System helps organizations track, measure, and improve employee performance. It ensures employees are aligned with company goals, receive timely feedback, and stay motivated to achieve better results.

How is Performance Management different from KRA and KPI?

Performance Management is the overall process of managing employee performance.

  • KRA (Key Result Areas) defines the main focus areas for an employee.

  • KPI (Key Performance Indicators) are the measurable indicators used to track progress.
    In greytHR, KRAs are called Goal Plans, and KPIs are managed through Reviews.

Why is Performance Management important for organizations?

It helps organizations:

  • Set clear expectations.

  • Improve employee productivity.

  • Provide consistent feedback.

  • Build transparency in evaluations.

  • Support fair promotions and rewards.

  • Reduce manual effort with automated workflows.

How does Performance Management benefit employees?

Employees get:

  • Clear goals and priorities.

  • Regular feedback to improve skills.

  • Recognition for achievements.

  • Transparency in performance ratings.

  • Better opportunities for growth and development.

What does greytHRโ€™s PMS include?

greytHR offers:

  • Goal setting and alignment with business objectives.

  • Continuous tracking of progress.

  • Feedback and comments from reviewers.

  • Customizable review forms and workflows.

  • Integrated reporting and performance insights.

  • Seamless linkage of performance results with rewards and recognition.

Does greytHR support different types of performance reviews?

Yes. greytHR allows admins to configure various review cycles, templates, and approval levels based on organizational needs, whether it is quarterly, half-yearly, or annual reviews.

Can employees and managers track progress in real-time?

Yes. Both employees and managers can track goal progress and review status in real time through their greytHR portal or mobile app.

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