Performance Management Literature Review

Introduction

Performance management is now considered as the most crucial and strategic HRD function to enable organisation to sustain in competition (Bhattacharyya, D 2011). Performance management is the process of creating a work environment or setting in which people are enabled to perform to the best of their abilities. The centrepiece of a performance management system is typically the performance appraisal (PA), a formal and systematic process for reviewing performance and providing oral and written feedback to the employees about performance at least annually (Seiden & Sowa, 2011) (Jain, S & Jain, R 2015).

Performance appraisal is an integral part of HRM. Human resources management implies the continuous improvement of all employees

It will look at the Performance Appraisal, from its beginnings, where it originated, where it is today and how it has advanced over time into a key talent management tool. It will also look at the most important features of the performance appraisal system and what elements are essential in implementing a successful appraisal system.

It will then review the benefits of Performance Appraisal systems and how they can develop an organisation’s workforce into a high performing labour force. As this study looks at employees’ perceptions, the literature review will also look at how effective Performance Appraisal can be of value to them and also how ineffective Performance Appraisals

The overall aim of this research is to examine whether the Performance appraisal is an effective management tool within Banks DIH Limited, the following questions were addressed during the research:

• What set 's the foundation of Performance Appraisal?

• What are the essential steps that set the foundation for an effective Performance Appraisal?

• How this entire interaction and review process is beneficial to the organization as a whole and what are the objectives of performance appraisal?

• What do employees perceive as the strengths and weaknesses of the current performance appraisal system?

• How can Banks benefit from implementing suggested improvements in performance management across the company?

Research Methodology

Research framework

The researcher adopted the framework designed by Saunders, Lewis and Thornhill (2011) known as the ‘Research Onion’ (see Figure 4.1. pp. 128) as a guide for the methodology of this study. See Appendix