Performance Management in Human Resource Management (HRM)
1. Introduction to Performance Management
Meaning of Performance Management
Performance Management (PM) is a continuous and systematic process of identifying,
measuring, managing, and developing the performance of individuals and teams in an
organization. It ensures that employee activities and outputs are aligned with organizational
goals and strategies.
Unlike traditional performance appraisal, which focuses on periodic evaluation, performance
management is ongoing and developmental in nature.
Objectives of Performance Management
● To align individual performance with organizational goals
● To improve employee productivity and effectiveness
● To identify training and development needs
● To motivate employees through feedback and rewards
● To support fair decision-making on promotions, compensation, and retention
● To enhance communication between employees and management
Importance of Performance Management
● Improves organizational performance
● Encourages employee accountability
● Enhances employee engagement and commitment
● Supports talent management and succession planning
● Promotes continuous improvement
, 2.Performance Management System (PMS)
Meaning of a Performance Management System
A Performance Management System is a structured framework that organizations use to
measure, evaluate, and improve employee performance in line with organizational objectives.
Components of a Performance Management System
● Performance planning
● Performance standards and goals
● Performance monitoring
● Performance appraisal
● Feedback and coaching
● Performance review
● Rewards and corrective actions
Characteristics of an Effective PMS
● Transparent and fair
● Objective and measurable
● Continuous and flexible
● Development-oriented
● Linked to rewards and career growth
1. Introduction to Performance Management
Meaning of Performance Management
Performance Management (PM) is a continuous and systematic process of identifying,
measuring, managing, and developing the performance of individuals and teams in an
organization. It ensures that employee activities and outputs are aligned with organizational
goals and strategies.
Unlike traditional performance appraisal, which focuses on periodic evaluation, performance
management is ongoing and developmental in nature.
Objectives of Performance Management
● To align individual performance with organizational goals
● To improve employee productivity and effectiveness
● To identify training and development needs
● To motivate employees through feedback and rewards
● To support fair decision-making on promotions, compensation, and retention
● To enhance communication between employees and management
Importance of Performance Management
● Improves organizational performance
● Encourages employee accountability
● Enhances employee engagement and commitment
● Supports talent management and succession planning
● Promotes continuous improvement
, 2.Performance Management System (PMS)
Meaning of a Performance Management System
A Performance Management System is a structured framework that organizations use to
measure, evaluate, and improve employee performance in line with organizational objectives.
Components of a Performance Management System
● Performance planning
● Performance standards and goals
● Performance monitoring
● Performance appraisal
● Feedback and coaching
● Performance review
● Rewards and corrective actions
Characteristics of an Effective PMS
● Transparent and fair
● Objective and measurable
● Continuous and flexible
● Development-oriented
● Linked to rewards and career growth
