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Performance Management: Its Definition and Benefits for Organizations and Its Employees

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Performance Management:
Its Definition and Benefits for Organizations and Its Employees
Jelissa Edwards

Management 0100
Sasha Chatar
October 24, 2014

Performance management is understood to be an ongoing process that manages employees and staff performance in alignment with the organization’s overall goals and performance. It is also understood that the aim is to help employees and staff members understand how their skills and efforts contribute to the organization. The management of performance within an organization can be of benefit to the organization and its employees in various ways. It can provide clear accountability and improve productivity for organizations as well as removing doubt by providing a clear understanding of expectations and motivating employees. THE DEFINITION OF PERFORMANCE MANAGEMENT

Michael Armstrong, former Chief Examiner of the Chartered Institute of Personal
Development (CIPD), defines performance management as “a systematic process for improving organizational performance by developing the performance of individuals and teams. It is a means of getting better results from the organization, teams and individuals by understanding and managing performance within an agreed framework of planned goals, standards and competence requirements.”1
PERFORMANCE MANAGEMENT BENFITS FOR ORGANIZATIONS AND EMPLOYEES
Organization Benefits

Performance management is carried out through the use of performance assessments— also known as performance appraisals—that are used by managers to formally assess and rate

1

Michael Armstrong, Performance Management: Key Strategies and Practical Guidelines (London: Kogan
Page Limited, 2006), 1.

1

individuals within the organization. 2 In addition, the role of appraisers when carrying out performance assessments is to give appraisees feedback based on factual evidence that

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