PERFORMANCE MANAGEMENT DEFINED
Performance management can be defined as a strategic and integrated
approach to delivering sustained success to organizations by improving the
performance of the people who work in them and by developing the capabilities of teams and individual contributors.
Performance management is strategic in the sense that it is concerned with
the broader issues facing the business if it is to function effectively in its environment, and with the general direction in which it intends to go to achieve
longer-term goals. It is integrated in four senses: 1) vertical integration —
linking or aligning business, team and individual objectives; 2) motional
integration — linking functional strategies in different parts of the business;
3) HR integration — linking different aspects of human resource management,
especially organizational development, human resource development and
reward, to achieve a coherent approach to the management and development of people; and 4) the integration of individual needs with those of the
organization, as far as this is possible.