Lesson 8: PERFORMANCE MANAGEMENT AND APPRAISAL
“In a knowledge economy, organizations rely heavily on their intangible assets to build value. Consequently, performance management at the individual employee level is essential and the business case for implementing a system to measure and improve employee performance is strong.” Management time and effort to increase performance not only meets this goal; it also decreases turnover rates.
How do we manage performance within the organization? The most common part of the process, and the one with which we are most familiar, is the process of the performance appraisal, or evaluation. In this lesson, we will use the phrases performance evaluation, performance appraisal, and appraisal interchangeably. However, the performance appraisal process is not the only thing that’s done in performance management.