Strategic performance literature review
Performance management is the process by which managers put in place to measure the abilities
of their employees in meeting and exceeding the goals of the organization and also to effectively
reward them. For large Hi-tech manufacturing multinational companies to outperform their
competitors, the human resource managers should motivate their employees, create loyalty and
improve their morale in the overall productivity. Most of the large Hi-tech multinational
companies usually downplay the importance of performance management. They never make
time for it. Also, they feel that employees are very busy to carry out this program. There are
others who feel like the program is too expensive or they are not sure about where they should
begin. This makes them wave it aside. Performance management process involves the setting of
goals, evaluation and reward. When this process is well done, the employee is usually more
productive, creative contributors and profitable.
Definition of Key Words
Domain: This can be termed as the focus of the performance management effort such as a
process, entire organization, an employee or a subsystem. Subsystems could be programs or
implementing new policies for ensuring a safe workplace (COENS, JENKINS & BLOCK,
2002). They can also be groups organized for accomplishing a result for an internal or external
Results: These are measures which offer particular information for assessing the extent of
accomplishment of results.
Indicators: These are also measures which depict the process towards being the result. For
instance, some indicators of an employee's toward achieving proffered results might be some
measure of an employee learning and productivity.
Organization’s preferred goals: These are the accomplishments which are targeted by the
company. They are usually made during strategic planning. The specificity level of these
objectives depends on the requirements and nature of the company.
Aligning results: companies that adhere to performance management focus on ensuring that all
organizational parts are effective and efficient.
Weighing results: Thus us the prioritization of the domain’s preferred results often expressed in
regards to ranking.
Standards: They specify how well an organization can achieve its preferred results by the domain
Performance plan: This plan consists of at least the domain’s preferred results, how they can tie
back to the preferred results of an organization, its weighing results and how they can be
measured and the standards that can be used in evaluating the results.
Ongoing observation, Measurement and Feedback: These are the activities that include
documenting of achieved results, making a comparison of preferred performance standards and
then providing feedback to the same domain (BHATTACHARYYA, 2011).
Rewards: The performance review process normally adds info about motivating employees
through issuing rewards if they have met the performance target or exceeded the standards.
Performance gap: This is the difference of the actual performance in comparison with the desired
Performance development plan: This plan conveys how the conclusion was made that there was
insufficient performance, what measures should be taken and by whom and when should they be
made, and when performance should be reviewed again and how it should be reviewed.
Evolution performance management
Performance management terms gains were significance when competitive pressures in the
marketplace began rising, and the organization felt that they required to introduce a