The term performance management, may be defined as a systematic process utilized by companies or firms to enhance success by advancing the quality of performance of their staff. This involves the participation of all employees, whether on an individual or a team basis which promotes organization effectiveness in alignment with the organization’s goals. In order for performance management to be effective, there are six steps of the performance management process which must be carried out. These include: prerequisites, performance planning, performance execution, performance assessment, performance review and performance renewal and contracting. The first step, prerequisites, takes into consideration knowledge of the organization’s mission and strategic goals and knowledge of specific job. As the word prerequisite suggests, employees are required to know the organization’s purpose, where it is going, the organizational goals and its strategies before one can move to the next stage. Therefore, organizations are required to create specific and clear goals, transfer these goals to the departments which will communicate them to employees. In addition, job description and job specification should be clearly stated. These include the knowledge, skills and abilities required for the specific job, the duties of the job and its working conditions along with the necessary tools employed for hire.
Performance planning specifically relates to results, behaviors, competencies and development plan. It basically involves employee responsibility for producing results, its outcomes, evaluation of how well each objective has been achieved, how a job is done, how to measure skills