First, a performance management system is one area of human resource management. It is now becoming a strategic issue for organizations, in their pursuit of addressing deficiencies in the performance of employees in a timely manner; channeling employees in the appropriate direction towards performance of specific objectives that are consistent with the work or overall strategies of the organization; and providing employees with appropriate and specific feedback to assist with their career development.

Secondly, a performance management system needs to be well conceived so that there is full concurrence on the system and that it is not viewed as a subjective tool to highlight employee weaknesses.

Since the organization’s desire would be to have only employees who perform at the highest level, any performance rating that suggests a position or rating at a lower level implies that there is a better standard in sight. It indicates the need for more to be done in pursuit of excellence. Data on employee skills and competencies can be extremely useful in executing transfers, promotions and other aspects of redeployment as person-job-fit and person-organization-fit needs are considered.

The value of compensation related to performance or productivity builds on a system of equity, particularly when the compensation is commission based and or incentive pay. Employees get to understand that improvements in performance drive compensation levels. However, the compensation system must be based on the element of fairness and every employee in the category has an equal opportunity to receive the reward system.

This brings into sharp focus, the potential impact of performance management systems on an organizational culture. The organization’s culture is for the most part, referred to as the values or systems that guide the day-to-day activities and how these elements of its core values impact the behaviour of the individuals in the organization.

A basic element of the human resource planning exercise is to match core competencies with performances and job requirements. Matching the right combinations of employees on teams should not happen by chance but instead the planning process should incorporate into its functioning feedback mechanisms that would be valuable in programme development designed to keep the focus of the organization. Such approaches, that is the development of employees, with the requisite skills and competencies that would benefit the organization, begins with the integration of the organization’s mission, vision and core values. The planning process fosters the development of employees with respect to their knowledge and understanding of the organization’s objectives and how they view their contribu

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