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Pretty Bhalla, Lovely Professional University Unit 1: Introduction to Performance Management

Unit 1: Introduction to Performance Management Notes

CONTENTS

Objectives
Introduction
1.1 Concept of Performance
1.2 Concept of Performance Management
1.3 Characteristics of Performance Management

1.4 Objectives of Performance Management
1.5 Principles of Performance Management
1.6 Performance Appraisal to Performance Management
1.7 Challenges to Performance Management

1.8 Summary
1.9 Keywords
1.10 Self Assessment
1.11 Review Questions
1.12 Further Readings

Objectives

After studying this unit, you will be able to:
Explain the meaning and characteristics of performance management
State the objectives and principles of performance management
Discuss performance appraisal to performance management

State the challenges to performance management
Introduction

The power of organization is increasingly linked to its intellectual capital rather than its physical
assets. People are now the drivers of corporate performance and competitiveness. Therefore,
performance management deals with improving organizational performance by improving
employee performance. Essentially, the cost of competitiveness involves effi ciency and
productivity. Dr Mritunjay Arthreya (2004) observed that workforce productivity constitutes

around 60 percent of the total cost. Therefore, the growing significance of performance
management needs no further emphasis.

1.1 Concept of Performance

Organizations have to compete for survival. It is survival of the fittest in the true sense of the

term. Performance is the only way to do that. An ordinary performance will not do. Even better
performance may not be adequate. It has to be necessarily the best in order to compete and
thrive.

LOVELY PROFESSIONAL UNIVERSITY 1