The following points bring out the importance of performance planning:
- It brings together favorable as well as unfavorable internal and external factors in combination with individual efforts for achieving optimum results;
- It increases the overall objectivity and accountability of the performance management process;
- It assists employees by making them clear about their roles, responsibilities, and performance expectations so that they can give their best towards organizational goals;
- It works in the direction of organizational excellence by planning and unifying managerial insight, employees efforts, and optimum resource utilization; and
- It concentrates on areas of critical importance and concern for better utilization of time, resources, and efforts.