Performance Management - Introduction

Performance management can be defined as a systematic process to improve organizational performance by developing the performance of individuals and teams working with an organization. It is a means of getting better results from the organization, teams and individuals by understanding and managing their performance within a framework of planned goals, standards and competence requirements. In other words, performance management is the process of managing an organization’s management strategy. This is how plans are converted into desired outcomes in organizations.

Performance management is a powerful tool

Performance management is a difficult role to play. Some people have difficulty when it comes to performance evaluation. Performance management is about motivation and partnership. When this kind of prospective is shared with your employees and they learn to see in that way, performance management becomes a powerful tool that will help your team to become more successful.

Management Tool

Performance Management is NOT Human Resource Planning

Performance management is sometimes mistaken for human resources and personnel system, but it is very different when it comes to execution. Performance management comprises of the methodologies, processes, software tools, and systems that manage the performance of an organization, whereas Human Resource Planning only takes care of individual employee’s work responsibilities and work delivery.

The benefits of performance management extend to enhancing broad cross-functional involvement in decision-making, and calculated risk-taking by providing greater visibility with accurate and relevant information, to execute an organization’s strategy.

Performance management involves many managerial roles, which shows you must be a communicator, a leader and a collaborator as well. Each individual in the team should understand exactly what their responsibilities are and what the expectations from them are, and how to work accordingly to reach the goals.

Scope and Uses

Many organizations jump from one improvement program to another, hoping that one of them will provide that big, elusive result. Most managers would acknowledge that pulling levers for improvement rarely results in a long-term sustained change. The key to improving is integrating and balancing multiple programs sustainably. You cannot break the chain by simply implementing one improvement program and exclude the other programs and initiatives.

There should be a strong bonding between the issues and the strategy of an organization. The manner in which an organization implements performance management can be influenced by its history, goals, mission, vision, strategic priorities, and the various problems it faces in its economic, political, demographic and technological environment.


Performance management is not free floating. If we simplify a little, performance management only exists to help the organization achieve its strategy in the best possible way to help the organization to survive and compete in the market.

Performance management has no end point. Sometimes, for busy, hardworking managers it seems like it is the reason we go through appraisal with staff and get the appraisal process done. Strong and improving performance by individuals and excellent performance management by all managers who are responsible to hold on with their teams are essential to achieving organizational goals.

Research has indicated that a great majority of individuals wants to perform excellently. When managers manage their teams and individual’s performance skillfully, this motivates individuals to be proud of what they do. Although this is a big generalization, it does look that most individuals really do want to do a good job, making our leadership in performance management a real-time opportunity.