Performance management literature reviewFrom the mid seventies we can note that scholars makes the distinction between smalland large businesses in terms of needs, level of sophistication and range of strategicplanning. Bracker and Pearson (1986), Rue and Ibrahim (1998), Perry (2001) andWijewardena, Zoysa, Fonseka and Perera (2004) all formulate definitions of strategicplanning which take the uniqueness of small businesses into account and allow for thefact that small businesses cannot draw on management and material resources in amanner similar to that of large organizations.Empiric studies findings indicate at a correlation between strategic planning andperformance. Nevertheless, the findings are mixed. A survey of twenty-six experimentalstudies enabled Miller and Cardinal (1994) to identify a significant positive connectionbetween strategic planning and small business performance.Robinson (1982) found a significantly high level of profitability as well as an increase insales and returns on sales and the number of full time employees in a group of smallbusinesses that employed external consultants for the purpose of strategic planning.Compared with other businesses, Bracker and Pearson (1986) discovered a significantincrease in income and remuneration per entrepreneur in businesses that preparedstrategic plans (the highest of four designated levels of strategic planning). No significantincrease was detected in the measure salary expenditure divided on the sum total of sales.A significant differentiation in the rate of sales increase was found by Rue and Ibrahim(1998) in small businesses that incorporated written planning (basic or sophisticated), asopposed to other businesses.Perry (2001) detected a significant differentiation in the degree to which planning wasconducted in small businesses that did not applied for bankruptcy as opposed to those thatdid. Wijewardena et al. (2004) define three levels of planning: no written planning; basicplanning; and detailed planning. The findings indicate that the level of planning stands indirect proportion to the level of increase in sales. Yusuf and Saffu (2005) classify threelevels of planning: low; moderate; and high. A connection was found between increase insales and the low level of planning. No correlation was found between strategic planningand increases in market share or in profitability.http://performanceappraisalebooks.info/ : Over 200 ebooks, templates, forms forperformance appraisal.