Following are the important characteristics of performance planning:
1. It forms the basis of effective performance management as it involves effective participation of both the employees and the managers in setting up performance standards;
2. It begins with identification and acceptance of organizational goals and strategies and ends with the establishment of performance standards;
3. It demonstrates the dedication of employees and managers towards the achievement of organizational goals and objectives;
4. It is an essential function of management and an essential part of the performance management system;
5. It is an instrument that assists the employees in giving their best to the organization through improved competencies, dedicated efforts, and meaningful results;
6. It provides a comprehensive approach to employee performance development;
7. It lays down the course of action for achieving desired goals and objectives;
8. It ascertains the resources needed for effective individual/team outputs;
9. It determines how to work effectiveness will be measured;
10. It denotes the organization’s willingness to recognize and reward extraordinary performances;
11. It provides a logical basis for differentiating between different levels of performance; and
12. It creates continuous communication that promotes a shared understanding of goals and expectations.