You have learnt about supply chain management and project management in the previous section. The management also needs to evaluate the performance of its staff for a particular task. This evaluation is done by way of performance management.
Performance Management is a way of managing people that encourages and helps them to use their capabilities optimally for achievement of the companies' business strategies and objectives.
It is a process for establishing a shared understanding about what is to be achieved, & how it is to be achieved. It is an approach to manage people in a manner that increases the probability of achieving job-related success by doing the right things in the most effective ways to the best of their ability:
- helping the employees know what "The right things are";
- encouraging innovative thinking to develop and codify better ways to do job; and
- Developing and empowering people to enable them to give their best.
A Performance Management System is depicted in the Figure.
Figure: Performance Management System