Objectives of Performance Management and Appraisal


Performance Management is a key process of HRM that provides basis for developing individual and business performance. And is a part of the reward system in the most general sense. The intention is to improve the performance of the individuals and teams. It is about getting better results by understanding and managing performance through an agree framework of planned goals, standards and competency requirements. Performance Management is about finding answers to "What is to be achieved" and "How it is to be achieved". It helps find better and effective ways to improved business results. 

Concerns of Performance Management

Performance Management is concerned with

  • Alignment of individual’s objectives with the strategic objective of the business, and creating an environment where individuals are encouraged to uphold corporate core values and have a belief that attainment of business objectives is beneficial to them.
  • Expectations are to be defined and agreed upon through role responsibilities and accountabilities. The employees need to have a clear understanding as to what is expected of them, what skills they should have and what they are expected to be or the kind of behaviors they shall demonstrate at work.
  • Performance management shall make employee more engaged and committed, through provision of personal goals, and helping them align them with the business, and develop their skills and competencies.

Objectives of Performance Management

The overall objective of Performance Management is to enhance the capacity and competence of individuals so that they exceed organizational expectation and work in a way that effectively and efficiently attains business strategic objectives. Performance Management shall not only provide for business development but also self-development through organizational support and guidance of managers and leaders.

Here are a few of the objective of performance management

  • Align the objectives of the individual with those of the business
  • Improve Organizational Performance through assessment of the current performance and creating plans for improvement
  • Provide adequate resources and basis for personal development
  • Develop a performance culture, where people are focused on objectives, improvement, development, where performance is properly measured and feedback is timely and adequate, positive characteristics and behaviors are reinforced and dialogue is a constant activity focused on development.
  • Inform contribution/performance pay decisions
  • Performance management is about getting a true balance in what is to be delivered and how it should be delivered, where the how questions must deal with the efficiency and effectiveness of both the business and individual. Performance management is not a just top - down process. It is not something done to people but it is for the people.