Introduction
Although it is a concept that has commanded attention from the management world over the past twenty years, and has contributed to the efficiency and effectiveness of numerous organisations, yet performance measurement remains a critical and much debated issue.
Most of the criticisms are directed to the performance appraisal process. Some call it useless and some even said it makes organisations worst (Bacal 1994, Deming 1986). However, these arguments against performance management were made a long time ago, with some more than twenty years ago. With the advance in technology and globalisation, who is to say that performance management has not improved?
In the later chapters, we will take a look at the evolution of
He is supported by others such as Lee (2006) commenting that "appraisals were never designed to improve performance, only to measure and rate it". These criticisms have some things in common. These comments might have been true in performance management’s most traditional form, however, like any successful system, it has since evolved through developments to overcome its shortcomings.
The origins of performance management theory and practice can be traced back to the introduction of scientific management in 1911 by Fredrick W. Taylor. It focused primarily on productivity by implementing job dilution, knowledge transfer and monetary incentives. Taylor believed in using scientific methods to find the “one best way” to carry out jobs. He divided jobs into parts and trained workers to perform their assigned tasks in a standard procedure. To increase motivation, monetary incentives were awarded to workers who achieve or exceed production standards.
Elton Mayo, however, thought that employees are not only motivated by money but could be better motivated if their social needs are met. In 1927, Mayo carried out the Hawthorne experiment where he observed that through communication, team work and involvement, productivity increased. Mayo discovered that using the knowledge of social science, he is able to secure the commitment of his employees. This formed the basis of the Human