Strategic performance management Issues and trends

Performance management refers to the process of goal setting, performance monitoring for feedback and development, and performance appraisal for evaluation as input to compensation and other administrative decisions.As a process, performance management is not a single event or a series of discrete events, but rather an integrated series of interactions. As a system, the components relate to each other in a continuous cycle that is affected by external factors (e.g., demands and opportunities) and internal factors (e.g., self-expectations and monitoring). At the individual level, we speak of an employee’s or manager’s goals and performance in relation to the strategies of the organization and department. At the group level, we speak of the department’s or work team’s goals and performance as affected by organizational expectations and the demands from other work groups. Departmental goals affect individual employees’ goals and performance, which in turn affect those of the department, other departments, and the entire organization. In this chapter, we present critical issues for practitioners and researchers for today and the future. We also present a case that illustrates the design and implementation of an organization-wide performance management process.