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• Concern with outputs,outcomes,process and inputs.

Performance management is concerned with outputs-the achievement of results ,and
with outcomes,the impact made on performance.

• Concern with planning

Performance management is concerned with planning ahead to acheive future

• Concern with measurement and review

Performance management is concerned with the measurement of results and
reviewing progress towards achieving objectives as a basis for action
• Concern with continuous development and improvement.

Performance management is concerned with creating a culture in which

organizational and individual learning and development are a continuous process.

• Concern for communication

This done by creating a climate in which a continuing dialogue between managers
and members of their team takes place to define expectation and share information.
on organization mssion,values and objectives.

• Concern for stakeholders

Performance management is concerned with satisfying the needs and expectations of
all organizational’s stakeholder.

• Ethical concerns
i) respect for the individual
ii)mutual respect
iii)procedural fairness

Organisation regarded as open systems that are continually dependent upon and
influenced by their environment.The socio-technical model of organization is based
on the principle that,in any system of organization,the technical or task aspects are
interrelated with human aspects.The external global and national environment-
business,economics,politics and society is constantly changing imposes changes on
the performance requirements of the organization .
Culture dominate internal environment of the organisation,which will also be influenced
by structure,size,working practices, the employee-relations climate and the type of people
employed..The components of organisation culture are values, norms and management
style. Values: are reflected in how people interact customer care, innovation, social
responsibility and how employees are developed.Norms are unwritten rules that define
the expectation of behaviour.Management style describes the way in which managers
behave and how they exercise power and authority.

How organization function is a contextual factor that directly affects the design and
operation of performance management process. From the image of organisation as
machines, to the idea of organizations as organisms. From a hierarchical model to a
network model. From the status driven view that managers think and workers do as they
are told to a view of managers as a ‘facilitators', with workers empowered to initiate
improvements and change.

Job design for individual contributors can be defined as the specification of
contents,methods and relationships of jobs in order to satisfy technological and
organizational requirements as well as the social and personal requirements of the


It is designed to reduce the rating errors that it was assumed are typical of conventional
scales.They include a number of performance dimension such as teamwork,managers rate
each dimension on a scale.
• This discourage the tendency to rate on the basis of generalized assumptions
about personality traits by focusing attention on specific work behaviors.
It takes time, trouble to develop and are not in common use.


It was sometimes called as ‘results-oriented appraisal’ because it incorporated the
agreement of objectives and an assessment of results obtained against these
objectives.Appraisal schemes often included ratings of performance factors such as
volume of work, quality of work, knowledge of job,dependabiliy, innovation, staff
development and communication and an overall rating.
According to Levinson(1976),
• Judgments on performance are usually subjective, impressionistic and arbitrary.
• Ratings by different managers are not comparable.
• Delays in feedback occur,which create frustration when good performance is not
quickly recognized.
• Managers generally have a sense of inadequacy about appraising subordinates,
and paralysis and procrastination result from their feelings of guilt about playing
The first recorded use of the term ‘performance management ‘ is in Beer and Ruh(1976).
According to them the aim of performance management was to help managers give
feedback in a helpful and constructive way ,and to aid in the creation of a developmental
• Emphasis on both development and evaluation
• Use of a profile defining the individual’s strengths and development needs.
• Integration of the results achieved with the means by which they have been
Full recognition of the existence of performance management was provided by the
research project conducted by the Institute of Personnel management(1992)
• It communicates a vision of its objectives to all it employees.
• It sets departmental and individual performance targets that are related to wider
• It conducts a formal review of progress to identify training, development and
reward outcomes.
• It evaluates the whole process in order to improve effectiveness.

The use of performance management in the best-practice companies is not because it
is a better technique than performance appraisal, but because it can form one of a
number of integrated approaches to the management of performance .The appeal of
performance management in its fully realised form is that it pervades every aspect of
running the business and helps to give purpose and meaning to those involved in
achieving the organizational success.