This means the integration of employee development with results based assessment. It encompasses performance appraisal, objective setting for individuals and departments, appropriate training programmers and performance related pay. Performance management emphasis development and the initiation of self-managed learning plans as well as the integration of individual and corporate objectives.
Performance management is a strategic and integrated approach to delivering sustained success to organizations by improving the performance of the people who work in them and by developing the capabilities of teams and individual contributors.
Performance is a record of outcomes achieved. Performance management is a means of getting better results from the organization, teams and individuals by understanding and managing performance within an agreed framework of planned goals, standards and competence requirements.
It is a process of establishing shared understanding about what is to be achieved, and an approach to managing and developing people in a way that increases the probability that it will be achieved in the short and longer term.
Performance management is a broad process that requires managers to define, facilitate and encourage performance by providing timely feedback and constantly focusing everyone’s attention on the ultimate objectives.
- It translates corporate goals into individual, team, department and divisional goals
- It helps to clarify corporate goals
- It is a continuous and evolutionary process in which performances improves over time
- It relies on consensus and cooperation rather than control or coercion
- It encourages self-management of individual performance
- It requires management style that is open and honest and encourages two-way communication between superiors and subordinates
- It requires continuous feedback
- Feed back loops enable the experience and knowledge gained on the job and individuals to modify corporate objectives
- It measures and assess all performance against jointly agreed goals
- It should apply to all staff; and it is not primarily concerned with linking performance to financial rewards.
- Performance management is concerned with performance improvement in order to achieve organizational, team and individual effectiveness
- Performance management is concerned with employee development. Performance improvement is not achievable unless there are effectiveness process of continuous development
- Performance management is concerned with satisfying the needs and expectations of all the organizations stakes holders –owners, management, employees, customers, suppliers and the general public
- Performance management is concerned with communication and involvement. It may contribute to the development of a high-involvement organization by getting teams and individuals to participate in defining their objectives and the means to achieve them.
- Improve organisational effectiveness
- Motivate employees
- Improve training and development.
- Set objectives and targets of work
- Provide feedback on performance.
- Change the organisational culture.