Performance Management Concept

Subject: Management
Pages: 3
Words: 755
Reading time:
3 min
Study level: College


The concept of performance management has been in use of many years now. It is meant to link employees’ salaries and their performance at work. Employers have been concerned with income justification for their employees and hence use performance management system to ensure employees are paid for what they do. The process of performance management begins by comprehending what success is for a given organization. Measures are then taken to ensure every personnel in the organization effectively and efficiently work to realize that success.

Performance management

Performance management is defined as process of putting into place mutual workforce indulgent within a corporate organization at the organizational level. Performance management is about synchronizing all the organizational goals and objectives with the experience and skills possessed by employees. Performance management is one of the management tools used by corporate executives to ensure employees only produce desirable outcomes (Breeze, pars. 1-2).

Purpose of performance management

Performance management provides a link between employees, their performance and result. It is used to achieve results in a corporate organization through group, personal initiative and goal alignment of enterprise. Performance management is also used in managing personnel behaviors to ensure that all individuals within the organization are encouraged to conduct themselves in a manner that allows and enhances mutual understanding and goodwill amongst the personnel (Breeze, pars. 4-6).

Performance management has also been employed as a technique by corporate managers so that they can be aware of the impacts their individual behaviors have on the employees or personnel working under them. Therefore, performance management is used to create a culture whereby every personnel and group within an organization take responsibility for sustained enhancement of a corporate organization’s business process (Breeze, pars. 4-6).

Components of performance management system

Performance management has about six components: the first component is performance planning. During performance planning, the workers make decisions on the targets and primary areas of performance that can be worked on within the budget framework for a year. This is made final between the employees and reporting officers of the organization.

The second component is performance appraisal which is usually done half yearly. During this process, the individuals whose performances are being appraised submit self-filled appraisal form quantifying individual achievements for the period. The appraiser then provides the final rating of the individual employee (Breeze, pars. 14-32).

The third component is feedback on performance. In this case, the organization gives feedback and counseling a high priority in the process of performance management. This is the time when an employee receives a feedback on his or her performance in the organizations. The employee is made aware of the areas of performance that need improvements. The organization must make sure there are sufficient resources for performance and performance improvement. The fourth component is rewarding good performance.

Rewarding good performance is a motivation point for employees. It is the rewards that make high performing employees distinct from low performers. The fifth component of performance management is performance improvement plan. In this component, new goals and objectives are set with new timeline for employees. The employees are also provided with adequate resources. The sixth and last component is potential appraisal which provides the basis for vertical and lateral employee movement (Breeze, pars. 14-32).

Anticipated outcomes of a successful performance management system

Performance management system is expected to achieve certain results. Importantly, the system is supposed to ensure that employees achieve the set goals and objectives using the available resources. This should in turn enhance a company’s overall performance, especially in relation to its vision and mission statements.

Moreover, the system is expected to ensure employees give quality services to the company with regards to the amount of salaries the company or organization pays for such services. Generally, performance management system is expected to ensure that all personnel of a given organization or company work towards achieving main company goals and objectives with an optimum amount of resources. This ensures that maximum benefit is derived from every resource in use (Breeze, pars. 14-32).


Performance management is defined as process of putting into place mutual workforce indulgent on a corporate organization at the organizational level. The purpose of performance management is to ensure that employees and managers are effective in their lines of duty. The components of performance management include performance planning, performance appraisal, feedback on performance, rewarding good performance and potential appraisal. The anticipated outcome of performance management is to ensure that employees and managers work efficiently to realize an organization’s goals and objectives (Breeze, pars. 14-32).

Works Cited

Breeze, Katie. Performance management: An overview. Chartered Institute of Personnel and Development, April 2011.