Having a Performance Management Philosophy

Organisations often place too much emphasis on administrative excellence and centralised control. When developing a performance and development management strategy, attention should be given to flexibility of strategy and the participation and cooperation of all stakeholders in making a contribution and taking ownership for the improved performance of the organisation. The focus is to create a win-win solution for all involved. To ensure success, a performance management system must be designed to reward improved performance and ensure that the right people are recognised and rewarded.

In developing a performance management system, the organisation must ensure that there is emphasis on aligning the new strategy with the reward strategy and even more importantly aligning both reward and performance with the overall company strategy. This means that all human resource initiatives must be driven by an inspiring company vision, mission, and values where rewards and benefits are aligned with required performance.

The goal with any performance management strategy must be performance-based remuneration where the right behaviour is rewarded and where there is an output orientation with emphasis on continuous improvement.