We accept

Introduction Historical History Of Performance Management Business Essay

Performance management is not really a new concept, even though it has become more popular within the last 2 decades. D. Gresty (2010:15) on his work on performance management expresses that "performance management has been much researched and discussed because the early on 1990's".

According to a study by ACCA global, performance management can be followed back again to the 1940's where in fact the process originated by managers to justify whether the salary that had been paid to the average person was justified.


In order to understand performance management well, we have to understand this is of 'performance' well before. Matching to Bates and Holton (1995), "performance is a multi-dimensional build, the measurement of which varies depending on a variety of factors".

Performance is the success of confirmed task measured against preset known specifications of correctness, completeness, costs and quickness. In a deal, performance is deemed to be the fulfillment of obligation, I a way that produces the performer from all liabilities under the deal.

Besides, The Oxford dictionary defines performance as "the success, execution, carrying out, and working out of anything purchased or undertaken".


There have been many literatures in the last decade about performance management. Elaine D. Pulakos (2009:3) defines performance management "as the "Achilles' Heels" of individual capital management, which is the most difficult Human Resource system to put into action in organizations. " In his publication on performance management, Armstrong (2009:55) defines performance management as "an activity for establishing distributed understanding in what is usually to be achieved, and a procedure for managing and expanding people that enhances specific, team and organizational performance. "

For this purpose, performance management can be defined as an important tool for an organization to achieve organizational success. Performance management will permit organizations to review

The purpose of performance management is to convert the raw probable of human source of information into performance by detatching intermediate barriers as well as motivating and rejuvenating the real human resource.

(Kandula, 2006)

"Performance management is making a shared perspective of the purpose and seeks of the business, helping each individual employee to understand and discover their part in adding to them and hereby handling and enhancing the performance of both individuals and corporation. "

(Fletcher, 1997:36)

Performance management is a continuous process of determining, measuring and expanding performance in organizations by linking each individual's performance and goals to the business overall objective and goals. Performance management is a system by which a business evaluates and builds up its worker's skills, manners and specific performance to be able to increase the organizational performance.


"Performance management is a means of getting better results from the organization, teams and individuals by understanding and handling performance within an agreed construction of organized goals, benchmarks and competence requirements. It really is an activity for establishing distributed understanding in what is usually to be achieved, and a procedure for managing and developing people in a manner that increases likelihood that it will be achieved in the brief and long lasting. It is influenced and owned or operated by line managers. "

(Armstrong, 2001)

Performance management is an excellent tool to avoid problems from occurring during the 12 months. A lot of people think performance management entails looking backwards, because they focus on the appraisal, however in fact, goal setting, and communication about performance throughout the year, helps to identify obstacles to performance before they impact on performance. The effect is better productivity, and less "fire-fighting" or dealing with performance problems following the fact.


The first difference between performance management and performance appraisal is explanation. Performance management is a couple of activities and assessments that ensure the company is being effective and effective along the way of get together its goals. It analyzes and specializes in various elements inside the company structure, like the efficiency of the business, the performance of a specific department, stages of producing a product or service and employee performance. Performance appraisal is the precise examination of the performance of employees inside the company. It evaluates the employee's work and quality for the year. Performance appraisal can be viewed as one step in the greater work of performance management--a step that targets the employee's previous performance--while performance management is an ongoing process that evaluates day to day performances.

The desk below shows some of the dissimilarities between performance appraisal and performance management.

Performance appraisal

Performance management

Focus is on top down assessment

Stresses on shared objective preparing through an activity of joint dialogue

Performed annually

Continuous reviews are performed

Usage of scores is very common

Usage of scores is less common

Focus is on traits

Focus is on quantifiable targets, prices and behaviors

Monolithic system

Flexible system

Are quite definitely associated with pay

Is in a roundabout way associated with pay

Source: Armstrong (2009) cited by, management study guide

According to standard chartered standard bank, performance management can be involved with those functions and conducts by way of which the managers manage the performance of the employees for developing high reaching organizations.

According to Eli Lilly and Co. performance management targets aligning the average person goals with the goals of the organization and means that the employees focus on the right responsibilities and do the right things.


The process of performance management was identified by Latham, Sulsky and Macdonald in 2007 cited by Armstrong in 2009 2009 involves four steps. They are really the following:

Desired job performance is described.

Specific challenging goals are placed in regards to what the person or team should start doing, stop doing or do in different ways.

The individual's performance face to face is discovered.

Feedback is provided and a choice is manufactured about training, moving, promoting, demoting or terminating the contract of a person.

Dr. Christopher Mabey, Dr. Graeme Salaman and John Storey (1998) designed a schematic style of performance management. They said that "there is absolutely no solitary, universally accepted model of performance management used". This can be true as each organization has its culture and its manner to increase the performance of individuals and so the organizational performance. Each corporation has its situation and performance management systems will change from organization to organizations. They strains that, the model can be portrayed as a 'performance management circuit' comprising five elements.

Setting performance objectives

Measuring outcomes

Feedback of results

Rewards linked to outcomes

Amendments to goals and activities

These two types of performance management system are practically the same, but Armstrong didn't point out the 'praise' factor in his model very obviously, which is very important. This compensation can have a positive motivational influence on employees. This may supercharge up performance of personnel, thus organizational performance.


According to a research by Dartmouth (2008), feedback is among the most valuable things that you and your partner provides one another. Regarding to their research, feedback can do many things. Such as:

Honor competence and reinforce behaviors you are looking for

Help align anticipations and priorities

Fill spaces in knowledge

Let people know where to take corrective actions

Alleviate concern with the undiscovered.

Feedback is a way of communication with another person. Relative to the research of Dartmouth (2008), the purpose of reviews in performance management is generally to:

Improve work performance

Maintenance of performance

Change behavior

To make another person aware of one's behavior after others.

Feedback is vital for a performance management system. Opinions is the info that about performance that causes change or maintain performance.



More than 7 000 students trust us to do their work
90% of customers place more than 5 orders with us
Special price $5 /page
Check the price
for your assignment