Abstract:
Performance management system (PMS) is the heart of any “people management” process in an organization.
Organizations exist to perform. If employees do not perform, organizations would not survive. If employees
perform at their peak level, organizations would be competitive and productivity would increase. Performance
management supports an organisation in the achievement of strategic goals and objectives. It assists managers in
setting clear performance expectation goals for all employees that are aligned with the strategic goals. It provides
a structure for employees to develop the skills they need to achieve the organisation’s strategic goals. The key
features of PMS involve setting objectives, measurable performance criteria expected of the individual employee
must be made known to him/her from the beginning of the year. There is regular day-to-day meeting as well as
periodic formal feedback meetings with subordinates. An unbiased annual assessment of performance based on
specific measurable targets set at the beginning of the corporate year is carried out. During these end of year
assessment/appraisal face-to-face meetings, achievements and non-achievements of targets are discussed
objectively. Necessary steps are then taken to either recognize performance or improve performance, enhance
career development, promote, reward and compensate as deemed fit. The study shows how important PMS is to
modern organizations when it comes to performance measurement. The study then concludes and recommends
among other things that efforts should be made by organisations to ensure effective and efficient performance
management system that would ultimately recognize employees’ efforts, improve performance, enhance career
development which would go a long way to achieve organisational strategic goals and bring about competitive
advantage.
