Performance Management

Performance management is a integral business tool for managing people from all levels an organisation. (Armstrong, 1994).  Nowadays organisations integrate performance management systems into its business models as a key driver for the development of its employees. The employee  will be given a specific set of objectives over a set short time period and measured to see if employee has achieved desired outcomes.  Such targets can be defined  by current job description and desired outcome of performance for the set time period. (Potgieter, 2002).  Each organisation can tailor and facilitate  a wide and varied range of designs and methods  of  performance systems  which will meet the objectives of the organisation. (Gunnigle, et al., 2002).  Performance management can be described as tool for employee development with constructive feedback from appraiser encouraging continuous improvement. This process should be frequent in helping employees set and achieve goals and in turn the appraiser identifying possible guidelines in an effective manner.

Performance management  is described as a strategic and integrated approach that capitialises on employee performance and capabilities to achieve high levels of organisation performance by a continous process of reviews focusing on the future instead of the past. (Armstrong & Barron, 1998).  Performance management is no longer a discrete event but rather a continuous process where performance appraisal is owned and driven by managers that the latter been driven by HR. (Latham, et al., 2007)..Sparrow argues that with the introduction of human resource management (HRM) into the structure of an organisation it has contributed to a shift towards performance management throught open and honest communication between managers and individuals. (Sparrow, 2008).  Performance management is no longer in the remit of a HR  department but is centrally aligned with strategic goals of  managing the business  as it is about  about directing people and controlling the flow of training or reward.