According to Julia Huprich Performance management is a system designed to identify the ways to achieve organizational goals through constant assessment and feedback leading to improvement of employee performance. Performance management, unlike the performance appraisal or annual evaluation process, is an ongoing assessment of employees in a manner geared to match their goals to the organizational goals. It also makes strong use of goal-setting and metrics to identify progress and areas of individual strengths.
Performance management is a process by which managers and employees work together to plan, monitor and review an employee's work objectives and overall contribution to the organization.
Its purpose
Performance
management systems have been created to serve the organizations by imposing employee decision-making and employee development. Visibly, these two purposes are related, but infrequently held well by a single system. When the performance management system is used for decision making, the appraisal information is used as a foundation for salary increases, promotions, allocations, duties or reductions in manpower. When the performance management system is used for development, the appraisal information is used to lead the training, work experiences, guidance and other evolving activities. Though it is supposedly conceivable to have a performance management system that contributes in both decision making and development, this can be tough to attain in practice. In addition, study has publicised that the purpose of the evaluation (decision-making versus development) affects the outcome.