Performance Management Systems and Strategies

DEFINITIONS AND CONCEPTS OF PERFORMANCE MANAGEMENT

Performance management, per se, is a cyclical process. Organizations manage performance with twofold objectives: to assess the employees' performance and to develop the employees' performance. Both these objectives help organizations to achieve strategic intents, i.e., achievement of organizational objectives. The process encompasses setting of performance objectives for the organizations as a whole, which is then cascaded to divisional-, departmental- and individual-level performance objectives. After setting these performance objectives, the process requires rating of employees' performance against the pre-set performance goals, objectives or standards, and deciding of future employees' development ...