What is the primary purpose of performance management?

• A. Increasing salaries
• B. Reducing headcount
• C. Auditing expenses
• D. The process of getting the most out of employees and ensuring they perform their role effectively so organizational goals are achieved

Answer: (D)

Performance management is about getting the most out of employees and ensuring they perform their role effectively so organisational goals are achieved. It involves setting clear objectives, monitoring progress, giving feedback, coaching, and developing people so their capabilities align with what the organisation needs. It’s a continuous cycle of planning, reviewing, supporting, and rewarding that aims to improve both individual performance and overall organisational performance. The other options describe different HR or financial activities—salary decisions, headcount changes, or auditing expenses—not the ongoing process of managing and improving performance to achieve strategic objectives.