Performance Management, therefore, combines various management methods that support each other in striving for improved performance in organisations.
The concept of performance management and the debate over the effectiveness of performance management programmes have been of interest among human resource professionals for many years (Lawler & McDermott, 2003). As organisations seek ways to improve their competitive edge while maintaining or cutting budgets they are looking towards their human resources to provide more value for money. Performance management is seen as a key element for success in today's increasingly competitive environment (Anonymous, 2001). Indeed, a review of its theoretical foundations indicates that performance management should achieve the stated and, while there is empirical evidence to that effect, the fact remains that its implementation is problematic.
Performance Management, as a management method, has three major components, each of which is based on management theories. The first component is strategic planning, involving short and long term goals and objectives, as well as defining the mission and future vision of an organisation and each of its divisions. The second component has to do with constant measurement of variables from the various parts of an organisation. ...Show more