Performance management

Organizational interest in deed management has increased as a result of competitive pressures, the influence of HRM and the individualisation of the oeuvre relationship. Storey and sisson define performance management as an mesh topology set of policies and practices which have as their focus the enhanced doing of organisational objectives through a concentration on individual performance, the cardinal elements of performance management be:

= the creation of a divided vision of the organisations strategic objectives

= the establishment of performance objectives (derived from the organisations strategic business sector objectives) for each function, group and individual to ensure that their performance is aline with the needs of the business

= the use of a formal review bear upon to evaluate functional group and individual progress towards determination achievement

= the tie-uping of performance evaluation and employee development and rewards to motivate and reinforce desire behaviour. Thus, performance management involves goal establishment, performance evaluation, employee development and reward. It provides the link between the organisations strategic business objectives, employee performance, development and rewards and organisational results.

Performance appraisal

Performance appraisal may be viewed as an overall measure of organisational effectivenss: organisational objectives are met through the effort of individual employees. If employee performance is improved, the organisation will wind its performance. However, it should be noted that some experts do not harmonize these assumptions.



Deming, for example, argues that:

= individual employees do not differ significantly in their work performance and that any observed differences are merely the result of sampling error

= any variation in employee performance is predominantly a result of factors outside the individuals control

= management appraisers are incapaple of distinguishing between employee-caused and system-caused variations in performance.

Nevertheless, appraisal of employee performance remains a critical and ongoing management activity. This is because managers are continually find and judging their employees.

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