What is Performance Management Software?

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  • Written By: Leah Y Y Bravo
  • Edited By: C. Wilborn
  • Last Modified Date: 27 February 2020
  • Copyright Protected:
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Performance management software is a human resources tool designed to track and document employee performance. Human resources data is recorded electronically and helps provide decision makers with valuable data they can use to make key company decisions. Performance management software is designed to replace other traditional forms of employee performance tracking, such as multiple hardcopy forms, unrelated databases, inconsistent spreadsheet files, and correspondence.

Many companies see a great benefit in using this type of software, because it helps human resources professionals with organizing large amounts of data. Human resources professionals spend a great deal of time dealing with documentation, so this is as a key selling point of performance management software. In addition, the data feeds into one central location. The information is also entered in a standardized format, which makes it easier to analyze the data.

Performance management software can be used during a traditional annual performance review, as well as a number of other ways. For example, a robust software package could help track what types of technologies are used by a particular group in the company, and record the completion of required employee training. It could document trends in negative incidents or positive performance in different locations. It may also provide perspective on commonalities amongst a group of recruits.


The data in these programs must be carefully protected; in many places, there are legal requirements to ensure employee privacy. Good performance management software should include safeguards against unauthorized access. Another way of protecting the data is to create different types of users with different access rights so not everyone has access to all the information. This means that the CEO of a company would be able to see different information than an administrative assistant to the human resources department would, for example.

Some software solutions are scalable, meaning they come in different parts. If purchased from the same company, these components are intended to work together to track and analyze different types of data. This allows businesses to select which components of performance management software they need. Some forms of performance management software are designed to synchronize with the company’s financial management, product tracking, and other software systems. Many companies also offer regular software updates.

Different companies have varying levels of success implementing and benefiting from performance management software systems. A company’s industry, geographic locations, and size all play important roles in what kinds of software package the company may require. Factors that impact this success may include selecting the right program, the cost of initial investment, how successful the software rollout is, how comprehensive the customization has been, and how the data that the program provides is worked with.



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