an article by Herman Aguinis, Harry Joo and Ryan K. Gottfredson (Kelley School of Business, Indiana University) published in Business Horizons Volume 54 Issue 6 (November-December 2011)
Abstract
Individual performance is a building block of organisational success. Not surprisingly, virtually all organisations have in place some type of performance management system. Yet, managers and employees are equally sceptical that performance management adds value; usually, it is seen as a waste of time and resources.
We argue that the potential benefits of performance management are not realised because most systems focus exclusively on narrow and evaluative aspects such as performance appraisal. Herein, we offer a broader view of performance management, including discussion of how it differs from performance appraisal. We highlight specific and important benefits of performance management for employees, managers, and organisations.
We also describe research-based conclusions regarding how performance management systems should be designed and implemented to realise these benefits.
We hope our article will demonstrate that well-constructed performance management systems should not be hated, but rather embraced.
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