Performance Management: Literature Review

This paper reviews the literature on performance management and appraisals to see where there may be useful learning for organisations. It also provides important criteria on which to judge the effectiveness of the implementation of a performance management system.

Firstly, we examine the purpose of performance management systems, then the changes organisations are making to their systems to support a shift from appraisal towards a more rounded performance management approach. We then highlight the common critiques of performance management systems.

The focus of the paper then turns to the key themes which determine the effectiveness of a performance management process. This is followed by a review of the link between performance management and reward; personal development planning and career and talent discussions and the management of poor performancethrough appraisal.