ABSTRACT
Performance appraisal systems are often unpopular and unsuccessful because they are seen as just another add-on human resources management technique. Most managers find it difficult to play both these roles credibly at the same time. This strengthens the argument that performance management systems should be restricted to performance-related matters and not extended to remuneration, training, career development and other areas of human resources management. Sooner or later every organisation has to make decisions about the performance management system it wants, and what the objectives are going to be. An organisation must have a clear purpose for its performance planning and review system. Ideally, the focus should be tightly on performance. Performance planning and review discussions cannot by themselves produce open, trusting and mutually dependent relationships between managers and employees; the process does, however, work in the opposite direction. Setting targets and objectives for different types of jobs is critical to performance planning and review.
