Key directions

Performance Management Analysis


Performance management at individual level has developed in the last two decades to be aligned with the organisational strategy, to create a clear line of sight. Individual goals and performance indicators are based on and aligned with the organisational ones, to enable clear ownership and responsibility at individual level towards the achievement of strategic goals.


Nowadays, performance management at individual level is mostly considered the same as performance measurement, evaluation or appraisal. However, measurement does not equal management. Performance measurement is a subordinate process of performance management, besides performance planning, organizing and coordinating. Implementing performance appraisal is mostly seen and a command and control system, individuals being often reluctant to being evaluated on strict criteria. It is mostly a top-down process, directed from strategic to individual level.


Performance management on is a key factor to deliver better outcomes. People are considered more often as a critical factor in making performance management work. Human capital for example, is a concept concerned with the added value people provide for organizations (Armstrong & Baron, 2007).


Key directions

Organisations will focus to:


  • Determine and measure the impact of staff on the business and their contribution to shareholder value (Armstrong & Baron, 2007).
  • Get their employees engaged and involved, this generating a greater ownership and accountability level among staff.
  • Improve overall performance through improving individual performance. Therefore, one focus for the future will be building skills and capacity, motivating staff, refining the systems and organisational structure.
  • Invest in the support tools and technology people work with such as IT and communication systems.
  • Offer support to individuals to focus on performing better or building teams with the right balance of skills.
  • Continue implementing performance appraisals for individual measurement, compensation, learning and development.
  • Build a performance-oriented culture, through promoting beliefs, values and behaviours of individuals, that encourage certain norms of acceptable and desired behavior related to performance.
  • Enhance learning within organizations, “ where people continually expand their capacity to create the results they truly desire, where new and expansive patterns of thinking are nurtured, where collective aspiration is set free, and where people are continually learning to see the whole together” (Senge, 1990).
  • Promote an improvement-focused management style: besides hard technical skills, managers need softer skills around communicating performance expectations, rewarding good performance and speaking honestly, but supportively, about under-performance (Improvement and development agency, 2006).



  • Armstrong, M. & Baron, A. (2007), Human Capital Management: Achieving added value through people, Kogan Page Limited, United Kingdom & USA.
  • Improvement and development agency (2006), a manager’s guide to performance management, available at: (accessed 16 September 2010)
  • Senge, P., M. (1990), The Fifth Discipline: The Art & Practice of Learning Organization, Random House, Inc., USA.


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