(Armstrong and Baron 2010) define performance management as 'a process which contributes to the effective management of individuals and teams in order to achieve high levels of organisational performance. As such, it establishes shared understanding about what is to be achieved and an approach to leading and developing people which will ensure that it is achieved'. They go on to stress that performance management is a key tool within an organisation to ensure that managers, manage the company so they are as successful as possible. This ensures that the team know what is expected of them and understand how to do this, and are able to deliver with the skills they have and are taught in the organisation. The manager needs to show his team that they are all supported and are given positive feedback when the team has been successful. However as a member of a team it is important for a manager to allow team members to voice their own opinions on the team’s aims and objectives.
Performance management is important for an organisation to monitor so it allows individuals to know what is expected of them by the organisation they work in and so they know what they need to do to help the organisation to be a success and for them to participate towards that success. It is also necessary for the organisation to monitor performance management so they can check on an individual’s performance and to see if there performance needs to be improved and what action is needed for that individual to improve themselves. Furthermore performance management can also be used to improve an individual’s job satisfaction and so they can reach their full potential not just for their own benefit but for the organisation they work for.