Performance management is the systematic process by which an organization involves its employees, as individuals and members of a group, in improving organizational effectiveness for achieving mission and goals of the organization This term is used particularly for such systems employed in the US Government organizations.
This system has evolved in the USA over a period. Roots of the system can be traced back to Civil Service Act of 1883. However this term was first formally used in 1986 with the issue of “Performance Management Systems” regulations by the Federal Government.
Performance management includes the following steps.
- Planning the work and setting objectives
- Regularly monitoring performance against the plans and objectives
- Developing the capacity to perform as required by the plans and objectives
- Periodically rating performance
- Rewarding people in accordance with performance.