Performance Management in Human Resource Management:
Performance Management (PM) is a system composed of an orderly series of programs designed to define, measure, and improve organizational performance (Katz & Green, 1997). It is a system developed to ensure compliance with requirements, that is, that staff are in compliance with written standards. PM uses the tools of statistical process control to form the basis for decisions about change. It incorporates the processes of performance awareness, performance measurement, and performance improvement.
Successful PM requires the creation, maintenance, use, and evaluations of mechanisms to define and revise standards and to inform those affected by the standards about them (Katz & Green, 1997). It requires the judicious deployment of fiscal, human, and material resources. It speaks directly to issues related to quality and such traditional quality-oriented tasks as quality assurance, quality control, and continuous quality improvement (CQI). In such disparate settings as sales organizations, hospitals, automobile and other manufacturing facilities, and schools, PM is a vital element of a cross-sectional, organization-wide strategy for coping with uncertainty, managing change, and "growing" an organization while satisfying client and customer needs (Skinner & Mabey, 1997).
Strategic human resource management is integral to PM. The role of human resource management (HRM) within organizations and its relationship with organizational performance and business strategy has received a great deal of attention in the past decade (Kamoche, 1994). The drive for enhanced organizational performance and the need for integrative practices that are aligned to and support the organization's primary strategic objectives has linked HRM to other organizational and business activities and strategies. Katz and Green (1997) have commented that PM in the health care or hospital env...