ABSTRACT
The first guiding principle of performance management is to define performance in a manner that fits the organization’s context and its objectives. The definition of performance must also enable an organization to measure results and to compare the actual results to what is required. The definition of performance should specify the criteria used in that definition. And the measures used to indicate the level of performance must not be deficient or contaminated by irrelevant factors. Managing performance effectively is one of the greatest challenges faced by those responsible for doing so. Performance can be defined in terms of results, behaviors or both. Measuring results in quantitative terms has its advantages. In order for good decisions to be made when evaluating performance it is mandatory to define performance clearly in advance, ensuring the employee understands the criteria and standards that will be used to measure performance.
