Performance Management

Gary P. Latham, Lorne M. Sulsky and Heather MacDonald

in The Oxford Handbook of Human Resource Management

Published in print June 2008 | ISBN: 9780199547029
Published online September 2009 | e-ISBN: 9780191577390 | DOI:

Series: Oxford Handbooks in Business and Management C

Performance Management

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A distinguishing feature of performance management relative to performance appraisal is that the former is an ongoing process whereas the latter is done at discrete time intervals (e.g. annually). Ongoing coaching is an integral aspect of performance management. Performance appraisal is the time period in which to summarize the overall progress that an individual or team has made as a result of being coached, and to agree on the new goals that should be set. Common to the performance management/appraisal process are the four following steps. First, desired job performance must be defined. Second, an individual's performance on the job must be observed. Is the person or team's performance excellent, superior, satisfactory, or unacceptable? Third, feedback is provided and specific challenging goals are set as to what the person or team should start doing, stop doing, or be doing differently. Fourth, a decision is made regarding retaining, rewarding, training, transferring, promoting, demoting, or terminating the employmemt of an individual.

Keywords: performance management; performance appraisal; performance excellence; specific goals; rewarding; training

Article.  7955 words. 

Subjects: Human Resource Management ; Organizational Theory and Behaviour

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