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Performance Management : Effective And Efficient Planning

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Performance management is a management process that brings managers and employees together to work towards an effective and efficient planning, monitoring and reviewing the output of employee using the organization’s goals and objectives as a parameter. It is a management success tool that helps the employees, managers, and the organization to succeed. Performance management makes sure the organization gets what the employer expect from the employees (Mathis & Jackson, 2012).
Performance Management Theories. Performance management is important in any organization that there is no single globally accepted theory of performance management. Different scholars have opined the topic in their ways of understanding and experience.
Performance Management Cycle A renowned scholar, Mabey prescribed the theory of performance management in the form of ‘performance management cycle’ that has five elements that show how performance management system should be conducted in an organization. The elements of performance management include: 1. Setting of attainable goals and objectives. 2. Measuring the performance by aligning it with the set goals. 3. Feedback of performance results for adequate appraisal. 4. Reward and compensation based on performance results. 5. Continuous amendments to objectives and activities (Mabey et al., 1998).
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Goal-setting theory Goal setting theory connotes that goal setting is linked to individual performance. It says that concrete, measurable, and attainable

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