Performance management is defined as a systematic process for improving organizational performance by developing the performance of individuals and teams. The overall aim of performance management is to establish a high-performance culture where individuals and teams take responsibility for continuous improvement within a framework provided by effective leadership. Key purposes include focusing people on achieving goals and aligning individual goals with organizational goals. Characteristics include it being a planned, continuous process that involves managers and employees working together as partners to achieve results.

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1.1 Performance managementdefined
1.2 Aims of performance management
1.3 Characteristics of performance management
1.4 Concerns of performance management
1.5 Understanding performance management
1.6 Guiding principles of performance management
1.7 Performance appraisal and performance management
1.8 The process of performance management
1. Definition of PerformanceManagement
A systematic process for improving organizationalperformance
by developing the performance of individuals and teams.
2. Performance management is: ‘The development of individuals
with competence and commitment, working towards the
achievement of shared meaningful objectives within an
organisation which supports and encourages their achievement’
(Lockett, 1).
3. ‘Performance management is ManagingThe Business’
(Mohrman and Mohrman, 2).

2. 4. Performance management is: the process of ‘Directing and
supporting employees to work as effectively and efficiently
as possible in line with the needs of the organisation’
(Walters, 3).
5. ‘Performance management is a strategic and integrated
approach to delivering sustained success to organisations by
improving the performance of the people who work in them
and by developing the capabilities of teams and individual
contributors’ (Armstrong and Baron, 4).
1.2 Aimsof PerformanceManagement
 The overall aim of performance management is to establish a
high-performance culture in which individuals and teams
take responsibility for the continuous improvement of
business processes and for their own skills and contributions
within a framework provided by effective leadership.
 Its key purpose is to focus people on doing the right things by
achieving goal clarity.
The following are the aims of performance management as expressed by a variety of organizations
(source: IRS Employment Trends, 1 August 2003, pp 12–19):
i. Empowering, motivating and rewarding employees to do their best
(Armstrong World Industries).
ii. Focusing employees’ tasks on the right things and doing them right. Aligning
everyone’s individual goals to the goals of the organization (Eli Lilly & Co).
iii. Proactively managing and resourcing performance against agreed
accountabilities and objectives (ICI Paints).
iv. Linking job performance to the achievement of the council’s medium-term
corporate strategy and service plans (Leicestershire County Council).

3. v. The alignment of personal/individual objectives with team,
department/divisional and corporate plans. The presentation of objectives
with clearly defined goals/targets using measures, both soft and numeric.
The monitoring of performanceand tasking of continuous action as required
(Macmillan Cancer Relief).
vi. All individuals being clear about what they need to achieve and expected
standards, and how that contributes to the overall success of the
organization; receiving regular, fair, accurate feedback and coaching to
stretch and motivate them to achieve their best (Marks & Spencer Financial
Services).
vii. Systematic approach to organizational performance aligning individual
accountabilities to organizational targets and activity (Royal Berkshire and
Battle Hospitals NHS Trust).
viii. The process and behaviours by which managers manage the performance of
their people to deliver a high-achieving organization (Standard Chartered
Bank).
ix. Maximizing the potential of individuals and teams to benefit themselves and
the organization, focusing on achievement of their objectives (West
Bromwich Building Society).
1.3 Characteristics of Performance Management
i. Performance management is a planned process
ii. Its concerned with inputs and values
iii. Its a continuous and flexible process that involves managers and those whom
they manage acting as partners within a framework that sets out how they can
best work together to achieve the required results.
iv. Performance management focuses on future performance planning and
improvement rather than on retrospective performance appraisal.