Performance management approaches

The competitive edge of modern-day business emerges from creation or discovery of a performance management. A system that increases efficiency, decreases cost or enhances quality confers immediate competitive advantage on its creator and sets a standard for the rest of the industry to follow. But once disseminated across the field of competition, it becomes the standard. Now a new, yet more innovative, high performance system must be discovered that once more creates competitive advantage for its inventors.

Performance management builds on a foundation of technical and ethical knowledge. Leaders determine which values their organizations promote and also how these values are reflected through strategies and program goals.

Such determinations require the courage of convictions and solid professional skills. Employees and citizens expect public efforts to be consistent with their needs and to reflect ethical and legal principles. Thus, performance management is guided by ethical principles. Professional knowledge is also needed, however.

Managers require detailed knowledge when exercising judgment in performance management or ensuring that changes are, for example, consistent with legal requirements that affect their programs or jurisdictions.

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Within the context of formal performance appraisal requirements, rating means evaluating employee or group performance against the elements and standards in an employee's performance plan and assigning a summary rating of record. The rating of record is assigned according to procedures included in the organization's appraisal program. It is based on work performed during an entire appraisal period.