Performance is a multi-dimensional concept which encompasses both behaviour and results. Behaviour is also an outcome of the mental and physical effort applied and can be judged on its own.
Hence, I would consider Performance management as part of the ‘Mixed Model’ as defined by Hartle (1995) which involves managing performance of individuals & teams by considering both inputs (behaviour) and outputs (results) which have to be developed for sustained success to an organization.It embraces all formal & informal measures to increase corporate, team & individual effectiveness in an organization as well as continuously develop knowledge, skill and competence.
Performance Management is a strategic process & is integrated into an organization in 4 ways-
- Vertically- This form of integration is achieved with business strategy and goals as individual & team objectives that support corporate goals are agreed upon.This is usually a top-down process wherein at each level team/individual goals objectives are defined in lieu of higher level goals.But it could also be a bottom-up process wherein team/individuals formulate their own goals within the framework of the organization.
- Horizontally-This form of integration is achieved by linking functional strategies in different parts of the organization with the agreed upon performance management system
- Individually-This form of integration is achieved by keeping in mind the needs of individuals and agreeing upon objectives through open dialogues between managers and employees rather than they being set so that responsibilities are shared and mutual expectations defined.
- Integration with HR-This form of integration involves linking performance management strategies with HR strategies that help in organizational development, Reward, employee development etc
