In late 1970’s Dr Aubrey Daniels co

In late 1970’s Dr Aubrey Daniels coined the term performance management, as a science imbedded in application methods for managing both behaviour and results within an organisation. In essence, performance management is a shared process of the day-to-day management of employees based on their agreement of objectives, knowledge, skills and
competence requirements. The traditional performance management system was focused on ‘‘what gets measured gets done’’. It was based on cost and accounting management techniques. It was carried out to meet the needs of expanding manufacturing industries during the 1980’s. Lately, enormous changes have taken place in technology and production
techniques that have made traditional performance measurement systems obsolete. There has been a shift in focus on ‘‘how to manage what is measured’’. This shift was caused for the need of new performance management system, which would assist in catering to the changing needs of the manufacturing sector. The performance measurement system forms
the core of a performance management system which assists in managing the company strategy (Lebas, 1995; Neely, 2005; Otley, 1999).