For effective management and evaluation of staff, performance appraisals are essential. The core reason behind performance management is to help an organisation gain sustained success by aiding their employees as a team and individually, into improving their standard of performance and capabilities enabling them to develop their best potential. This will endeavour better results when agreed framework of planned goals, standards and competences are set up as clear requirements.

There are four senses concerned with performance management that help achieve longer-term goals within a business when facing broader issues. These four being: vertical integration – aligning or linking all objectives as a team/business/individually; functional integration – linking functional strategies in various parts of the business; HR integration – linking different aspects of HRM especially organisational development, HR development and reward, to achieve a coherent approach to the management and development of people; and finally, the integration of individual needs.

Brumbach (1988) has come up with a comprehensive view that when both behaviour and outcomes are embraced, a view of performance is achieved:

‘Performance means both behaviours and results. Behaviours emanate from the performer and transform performance from abstraction to action. Not just the instruments for results, behaviours are also outcomes in their own right – the product of mental and physical effort applied to tasks – and can be judged apart from results.’1

So from this definition, a conclusion can be established that both inputs (behaviour) and outputs (results) should be regarded in managing team and individual performances. This is linked to the ‘mixed model’ (Hartle 1995) of performance management that covers achievements and competency levels, as well as objective setting and review.

IRS (1996) has effectively summarised the main principles of performance management as the follows points:

* It translates corporate goals into individual, team, department and divisional goals. * It helps to clarify corporate goals. * It is a continuous and evolutionary process, in which performance improves over time. * It relies on consensus and cooperation rather than control or coercion. * It encourages self-management of individual performance. * It requires a management style that is open and honest and encourages two-way communication between superiors and subordinates. * It requires continuous feedback. * Feedback loops enable the experiences and knowledge gained on the job by individuals to modify corporate objectives. * It measures and assesses all performance against jointly agreed goals. * It should apply to all staff; and it is not primarily concerned with linking performance to financial reward.2

Performance management is concerned with mainly four key points. These involve: performance improvement, employee development, stakeholders, communication and involvement. Performance management overall provides a framework in which managers can support their team members rather than dictating to them.

A continuous self-renewing cycle can best describe performance management. There are five key activities involved within this: the role profile, the performance standards, the personal development plan, managing performance throughout the year, and finally, a performance appraisal.

Firstly, the role definition is where main competency requirements and result areas are agreed in order to provide a basis framework for performance management. It helps describes what is required of the role holder. This includes the key principal accountabilities and the main output areas of the role. From this, the vital competencies are highlighted in order to indicate the appropriate behaviour needed to effectively perform within the specific role.

A performance agreement or contract is then collaborated, better described as the