Work Performance Management and Assessment

Abstract

Performance management is a collection of activities designed to help individuals and organizations improve performance. It includes setting expectations, monitoring progress, providing feedback, evaluating results, and using performance information to make talent decisions. Despite decades of research, little evidence supports the assertion that performance management leads to improvements in either individual or organizational performance, leading to a fierce debate about its usefulness. Critics charge that performance management is often too time-consuming and cumbersome, providing little value for all the effort required. Proponents argue that performance management is essential for aligning individual work to organizational goals, ensuring fairness in rewards, and protecting organizations against legal challenges. Controversies aside, the vast majority of organizations have a performance management system that includes formal performance reviews, the results of which are tied to compensation or other talent decisions. Organizations are increasingly seeking ways to streamline the process, simplify practices, and find more value. Achieving these goals entails defining the purpose that performance management should serve and implementing the specific components of performance management that are most likely to foster effective performance.