Peter Drucker put performance management right at the core of management which he defined as “the ability to convert effort (of people) into performance.”
Performance management has less to do with the skills of individual managers, except for the CEO, than it has to do with the management process and culture.
Process means that performance management is on-going and has a bearing on most people decisions – it is not a system to be taken off the shelf, dusted down, and applied once a year.
And when is performance management a part of the culture?
• When people accept that measurement is ‘the way we do things around here.’
• When it is perceived as being fair – when it is objective and applies to all.
• When people perceive that their rewards (salary increases, promotions, development opportunities, involvement) are linked to performance
In summary to benefit from performance management it must become part of the culture, and it should be a process – influencing all people decisions – and not a once a year event.
What is the purpose of performance management? Firstly it is to focus managers on the sole purpose.
Its primary purpose is to improve the quality of management – to focus managers on their primary function, which is converting effort into performance. Secondly the performance management must achieve the on-going development of people which is essential to sustain the growth of the enterprise.
To sum up: Organisations benefit from a performance management culture – not a once a year event – which has a bearing on all people decisions.
Why is performance management important? What is the objective?
The purpose is to improve the quality of management – to focus managers on their primary function which is converting effort into performance. The chosen performance management model must achieve the on-going development of talent which is essential to sustain the growth of the enterprise.
Next we will examine one such model.
|
Effective people management 
