The Dynamics of Performance Management


Performance management is an integrated approach aimed at improving the performance of individuals, as well as developing capabilities of teams and individual contributors. The performance management framework constitutes of planning, coaching, and appraisal where desired results are compared to the actual results realized. The ultimate goal of the organizational business strategy is improved sales, increased employee efficiency, and productivity.

Performance Management Framework

Alignment of the performance management framework to the business strategies is the best possible alternative in realizing set objectives. The goals and objectives of the client’s business enterprise should be aligned with the core values and purpose of inventing the business. Employees perform better when they understand the objectives and goals of the business as well as the purpose of the organization. They should be made to understand the difference they create when they achieve the set goals.

Organizational Performance Philosophy

The organizational performance philosophy suggests that employees’ personal development and growth tends to be a major concern for the organization once individuals are on board. Strategically planned programs such as those relating to development, training, and career advancement are essential for the organization’s well-being (Alleman, 2014). To develop a performance management program for the clients, emphasis should be put on the establishment of training and development plans for the employees.

Job Analysis

The introduction of new employees to the client’s business will either lead to the accomplishment of set goals and objectives or lead to company failure. Understanding the requirements of a job, personality, education, and experience of employees are essential aspects of job analysis. This consideration implies that for the realization of the desired results as per the management’s growth strategies, current employees should undergo intensive training and development programs to help them be more efficient and effective in their duties (Moynihan, 2008).

Limousine service has put strategies in place to ensure that it operates with a minimum of 25 employees. This is expected to result in a net revenue of $50000. The Detroit-based Commercial construction business currently operates with a total of 650 employees. The company’s organizational strategy implies that the workforce will be increased by twenty percent. This is expected to result in a total of 130 more employees. The projected revenue allocation for the first year of the organization’s operation is expected to remain at 15% with a turnover rate of 5% even after expansion. The organization’s planned expansion will lead to a twenty percent increase in the workforce. This will bring the total number of employees to about 30000.

Employee Skills

The orientation process of the workforce will consist of a face value introduction into the organization’s performance philosophy. The skills required to carry out duties and responsibilities dictate the performance management plan (Moynihan, 2008). Measurement of employees’ skills and consideration of the type of training and development program they will require is an important issue that must be addressed. This should be considered before addressing the skill gap (Alleman, 2014). The motivation to train employees to sharpen their skills derives from the desire to improve the quality of the performance management plan.

Skill Gap Analysis

An adequate skill gap analysis should be conducted to determine the deficiency of employee skills. This involves the definition of required skills and knowledge to complete the tasks presented by the organization followed by a comparison of the employees’ current qualifications. Identification of business goals is the first process in job analysis as it helps the organization to acquire the right caliber of employees to facilitate the achievement of its objectives (Alleman, 2014). A training plan should also be established to address the disparity detected after comparing the employees’ skills with those required by the organization.

Performance Feedback

The performance management framework for the clients should include effective performance feedback that will give a full and fair view of the employees’ performance. This should comprise of giving employees a chance of self-evaluation and determination of skills relevant to the accomplishment of their task. Ideally, results of performance feedback are used as a basis for rewards and compensation as well as the development of the most suitable interventions aimed at improving skills, knowledge, and behavior of individuals at the workplace. Face to face performance review is the best approach to delivering effective performance feedback. This is essential in making the performance management framework goals and objectives realized in a sensible way for the well being of the enterprise and the individual employees as well.


A performance management framework is ideal for any business to survive competition shocks and hardships within the industry. The growth and development of any business should include an effective performance framework as well as an adequate performance feedback mechanism. This is effective as it is comprised of proposed structures designed to improve the performance of an organization, individual, as well as a group or department.


Alleman, G. B. (2014). Performance-Based Project Management: Increasing the Probability of Project Success. New York: AMACOM.

Moynihan, D. P. (2008). The dynamics of performance management: Constructing information and reform. Washington, D.C: Georgetown University Press.