What is the primary focus of performance management?

The primary focus of performance management is to develop individual and team performance. This involves setting clear expectations for performance, providing ongoing feedback, and facilitating the growth and development of employees to ensure that they can meet the objectives of the organization effectively. Performance management systems are designed to align individual goals with organizational goals, promoting a culture of continuous improvement and accountability.

Fostering individual and team performance includes regular evaluations, training opportunities, and support systems that help employees enhance their skills, take on new challenges, and contribute meaningfully to the organization’s success. By concentrating on performance development, organizations can improve overall productivity, employee satisfaction, and retention.

The other options, while relevant in the broader context of business operations, do not encapsulate the primary focus of performance management. Managing financial resources pertains more to financial management, identifying and measuring inventory relates to supply chain management, and establishing organizational culture concerns the organizational development aspect.