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2.1 Definition of Performance Management

Armstrong and Baron (1998) defines performance management as a tactical and incorporated approach in providing constant success to organizations by improving the performance of the people who work in them and by developing the capabilities of teams and individual contributors.

According to Hildebrand (1997) a performance management system is the term for conducting performance appraisal, setting goals, communicating expectations, observing, documenting, giving feedback and helping employees to develop skills. If done well, it can help the organisation gain a competitive edge.

2.2 Criticism of the Performance Management System

Bevan and Thompson, (cited in Armstrong, 2000) criticised the theoretical model or what they called 'the textbook definition' of the performance management system by describing them as placing too much emphasis on a top - down method, focussing on objective settings which they believe underrate the extent to which training, development, and reward systems are driven from the bottom - up. They also disparaged the belief that a performance management system model can fit all situations and that many issues involved in making performance management work were under-emphasised.

The study that was accomplished by Fletcher and Williams (1992) specified that numerous organisations were a long way from operating an successful performance system as, for most of them, performance management system is the same as performance appraisal or performance related pay or both. They outlined that an effective performance management system is one which:

• is owned and driven by line management and not by the HR department;
• emphasis is placed on share corporate goals and values;
• Performance management is not seen as a packaged solution, but something that has to be developed specifically and individually for each particular organisation, and should apply to all staff, not just part of the managerial group.
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Schwartz, 1999 described an effec沪ICP备10026080号-1