Performance management encompasses two different categories of management. In one category the performance of the company is analyzed as whole, on the other hand the employee’s performance is analyzed, or in more explanatory terms an analyst views the complete performance of a company along with evaluating the efficiency of managers as well as the heads of companies in achieving goals on the other hand a system is created to evaluate employee performance to assist them in reaching rational objectives to ensure that the organization executes tasks in a better way. Performance management consist activities that ensure that organization goals and objectives are being met in an effectual and proficient way.

It focuses on the routine of work of the organization, different departments, the process in building products/service and employees. The different activities concerned with performance management are discussed in this article. Experts say that: “Employee performance management works best when work is planned and goals are consistent. This may mean having a clear way to communicate regarding work expected at the moment and upcoming work. Planning also includes defining expectations of the employee so that he or she is not broadsided by evaluation criteria not included in planning.” Basically performance management of individual employees is varied; it usually consists of the following:

• Setting goals

• Planning work

• Offering Feedback/reviews

• Offering opportunities to learn more in a particular field

• Rewarding employees who perform well.

The application of Performance Management

The principles of performance management are required wherever people interact with their surroundings to generate the desired outcomes. The performance management approach is regularly used in the workplace but it can apply wherever people network for instance, society as a whole, schools, community meetings, sport teams, governmental organizations, political settings, parties etc.  The laws of behaviour are same everywhere in the world in spite of the cultures being varied. Authors Armstrong & Baron (1998) define performance management as “A strategic and integrated approach to increasing the effectiveness of organizations by improving the performance of the people who work in them and by developing the capabilities of teams and individual contributors.”
Performance management makes it possible to get all employees to reunite individual goals with organization goals. It helps to convert any secondary business into a profitable organization as well as increasing its productivity. It can be used by large organization, single departments or by sections inside an organization as well as by individuals.
The most known performance management system is known as the Self-Propelled Performance Process (SPPP) It is a self-inspired performance process and has the following characteristics:[sky]

• It is the fastest known method for career promotion

• It is the quickest way for career advancement

• It is the surest way for career progress

• It is the best ingredient in planning careers

• It ensures career success

• The complete application of performance management

• It is the best way to incorporate human behavior research findings with organizational, management and leadership development values

• It is a way to increase motivation and productivity

• It helps improve performance and increase profitability for the individual as well as the organization

• It helps to inspire employees to get things moving

• It helps employees to utilize their own talents

Besides being the most popular method for performance management it is also the most neglected, when it comes to teaching about management and leadership principles. Any how, before starting a performance management process it is essential to conduct commitment analysis deriving information from the strategic plans of the organization, where the job mission statement is drawn for each job needed to be done.

The job mission statement is actually a definition of the job, in terms of the purpose of the job keeping in view the product, scope and customers. The objective of this analysis is specifically to determine the standards of employee performance and key goals for each work position.

After the commitment analysis is the work analysis of a specific job, in terms of the structure of the job along with reporting and job description. In any case that a job is not available, then an analysis of the system can be done to draw up a description of the job. The aim of this analysis is to establish the constant critical objectives as well as the performance standards of all the jobs.

The Benefits of Performance Management

“Planning and setting goals in performance management also creates a system of predictable rewards for good performance, and consequences for poor performance. This way the employee can reasonably assume the consequences of work performance, whether good or bad.” The management of systems performance or employees smoothes the process in the successful delivery of operational and strategic goals; there is a visible and instant connection that links the use of performance management programs or software’s and the organizational results and improved business.