ABSTRACT
Performance management is a method used to assure the performance of managers and employees. It is widely used for white- as well as blue-collar workers and relates to the power management has over their workforce. It also links the past to the present and to the future as performance management becomes a strategic tool. Performance management is predominantly designed to improve performance. As such it is not just linked to strategy but is also part of organisational culture. HRM uses a number of performance methods to assess employee performance. Crucial to the success of performance management remains its link to organisational objectives that set clear goals for performance. To improve on performance, management collects performance information for performance appraisals that remain vital. Performance appraisals allow management to feed back performance information to employees. Key to a successful performance management system remains the removal of barriers that prevent employees from performing. These can be established in feedback sessions designed as “problem solving” discussions that avoid many of the pitfalls of traditional performance management systems.
