Disadvantages Of Performance Management

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2.1 What is Performance Appraisal?

Performance management is a comprehensive activity aimed at improving employees’ performance (DeNisi & Pritchard, 2006). Armstrong and Baron (1998) cited in Chartered Institute of Personnel and Development (CIPD) (2009:2) define performance management as “a process which contributes to the effective management of individuals and teams in order to achieve high levels of organizational performance. As such, it establishes shared understanding about what is to be achieved and an approach to leading and developing people which will ensure that it is achieved. A strategy which relates to every activity of the organization set in the context of its human resource policies, culture, style and communications systems. The nature of the strategy depends on the organizational context and can vary from organization to organization”.

According to CIPD (2009) the definition is still relevant since it enables people to understand how their effort and skills are focused to the matters that improve the performance of organization. 82.8% of respondents in CIPD’s survey agreed that the cornerstone of performance management is PA (CIPD, 2009). There are a few tools that can be used in performance management but most of the practitioners are using appraisals in this area. Ismail et al (2011b) pinpoint four main advantages of using performance appraisal system, which are:

 Ability to identify employees’ training need based on their strengths and weaknesses

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