Why Is Performance Management Necessary in Organisations? Critically Assess the Difficulties That Arise in Its Implementation.

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This essay is going to explain why performance management is necessary within an organisation. Then go on to critically assess the difficulties to implement performance management in an organisation and how it affects individuals in the organisation.

(Armstrong and Baron 2010) define performance management as 'a process which contributes to the effective management of individuals and teams in order to achieve high levels of organisational 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'. They go on to stress that performance management is a key tool within an organisation to ensure that managers, manage the
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This can have its advantages and disadvantages in the working environment. It has its advantages as it can promote personal contact and open communication channels within the environment, its more flexible and less costly. However when reviewing an individual performance it can be more subjective and biased as the manager either likes the individual and doesn’t want to seem like they are giving negative feedback to them or doesn’t like the individual and is harsh when giving actions for the employee to follow to improve their success within the organisation. Also with carrying out the informal performance process it’s difficult to check how the feedback is been given to the employee for example the feedback can just be said in a passing by, which means the individual themselves won’t understand if the manager is being serious and may not follow their instruction.

With performance management there are many conflicts which can occur, one being that employee’s and the managers themselves all have different interests and needs associated with being involved within the organisation. Managers however have further conflicting interest when it comes to their employees as it’s hard to distinguish between judging them as an employee or helping them in the organisation.

To evaluate the
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