Performance management is an integral business tool for managing people from all levels in an organisation.(Armstrong, 1994). Nowadays organisations integrate performance management systems into its business models as a key driver for the development of its employees. The employee is given a specific set of objectives over a set period of time usually annually and measured to see if employee has achieved desired outcomes. Such targets can be defined by current job description and desired outcome of performance over the set time period. (Potgieter, 2002). Each organisation can tailor and facilitate a wide and varied range of designs and methods of performance systems which will meet the objectives of ...view middle of the document...
(Armstrong & Barron, 1998). Performance management is no longer a discrete event but rather a continuous process where performance appraisal is owned and driven by managers than the latter been driven by HR. (Latham, et al., 2007)..Sparrow argues that with the introduction of human resource management (HRM) into the structure of an organisation it has contributed to a shift towards performance management throught open and honest communication between managers and individuals. (Sparrow, 2008). Performance management is directly aligned with the strategic goals of managing the organisation by directing people and controlling the flow of training or reward.
The aim of performance management as outlined by Lockett states that continuous development of effective production systems and structures will enhance employee performance in line with continuous improvement of business performance in relation to the customer, product quality and expansion of products to become a market leader. (Lockett, 1992)
The philosophy of performance management is based upon a number of concepts such as integration of all organisational structures in order to achieve business objectives. All organisation values and communication of such goals and objectives should have a clear and defined mechanism enabling employees to manage and clarify their roles of responsibilities. Learning organisation should be developed through perfomance management enabling empowerment, partnership with employees. (Armstrong & Barron, 1998)