ABSTRACT

Using performance planning and review techniques within an organisation-wide system of performance management makes it easier for managers to play that role effectively. More positively, performance management may be seen as a total approach to managing people and performance. It involves setting performance aims and expectations for the organisation as a whole, for each business or operating unit within the organisation, and for work groups and individual employees. Originally, performance management was seen as an approach to directing and controlling people’s performance by systematically linking job requirements, job behaviours and job rewards in ways that recognised both individual needs and organisational objectives. Performance management systems can only work effectively when they become part of ‘the way we manage around here’. The differences between traditional and new employees have other implications for the transition from traditional performance appraisal techniques to a more holistic approach to performance management.