Performance management is a pre-planned process of which the primary elements are agreement, measurement and feedback.
The following are the characteristics of performance management −
Measures outputs of delivered performance
It is concerned with measuring outputs of delivered performance compared with expectations expressed as objectives. Its complete focus is on targets, standards and performance measures. It is based on the agreement of role requirements, objectives and performance improvement and personal development plans.
Concerned with inputs and values
Performance management is also concerned with inputs and values. The inputs are the knowledge, skills and behaviors required to produce the expected results from the individuals.
Continuous and flexible process
Performance management is a continuous and flexible process that involves managers and those whom they manage acting as partners within a framework that sets out how they can best work together to achieve the required results.
Based on the principle of management by contract and agreement
It is based on the principle of management by contract and agreement rather than management by command. It relies on consensus and cooperation rather than control or coercion.
Focuses on future performance planning and improvement
Performance management also focuses on future performance planning and improvement rather than on retrospective performance appraisal. It functions as a continuous and evolutionary process, in which performance improves over the period of time; and provides the basis for regular and frequent dialogues between managers and individuals about performance and development needs.