People illustration People theory

Performance management

Performance management is a management approach, which seeks to get the most out of the human resource. Typically rewards are related to performance and some form of appraisal scheme lies at the heart of this process.

There are many different types of appraisal system. Qualitative appraisal may take the form of a relatively structured interview in which the appraiser develops a report on the performance of the appraisee. Alternatively, a quantitative appraisal may be employed in which the appraiser ranks performance along a scale - excellent, good, adequate, inadequate, etc.

The appraisee will be seen at regular time intervals, and will be given feedback on job performance. The assessment of individuals will normally be against some specified performance standards, often related to a job description.

At a review meeting it is possible to establish individual objectives and targets for the subsequent time period. Individual development plans can then be created which set out how employees will work towards targets. The review meeting will also include an assessment of performance over the previous period against targets. This assessment will often be linked to rewards (e.g. an individual who has met or exceeded targets will be entitled to performance related pay.)

Appraisal also provides an excellent framework for designing training and development programmes. The review will act as a basis for establishing ways of improving performance. Learning and development goals will therefore be an integral part of this process.

Clearly, learning and development must be tied in with the reward system of the organisation, so that employees see them as both worthwhile in their own right and valued by the organisation. Appraisal should be seen by the organisation as an excellent vehicle for creating programmes for employee development.

Performance related pay - is a system of relating pay to levels of achievement of work based objectives or targets.


Supporting Documents

These downloads will help to put people theory into context using real world examples from real businesses.

Using the marketing mix to drive change
Parcelforce Worldwide logo

Discover how Parcelforce Worldwide applied people theory to prosper in the logistics industry by downloading our premium case study.

Meeting customers' needs
Travis Perkins logo

Find out how Travis Perkins applied people theory to thrive in the construction industry by downloading our premium case study.

Innovation in infant nutrition
Cow & Gate logo

Discover how Cow & Gate employed people theory to succeed in the food & drink industry by downloading our premium case study.

The use of the marketing mix in product launch
NIVEA  logo

Learn how NIVEA applied people theory to prosper in the manufacturing industry by downloading our premium case study.

Using sports marketing to engage with consumers
Kia Motors logo

Discover how Kia Motors employed people theory to prosper in the automotive industry by downloading our premium case study.