INTRODUCTION
This literature review aims to examine and evaluate the existing literature, which relates to the role of performance management in both controlling and developing employees. In the beginning, the review will emphasize on defining ‘performance management’, its brief history, evolution, and definitions through the existing literature available. In between this literature review, will highlight the issues related to performance management, which act as a hindrance in its perfect execution in organisations. The latter part of this literature review will focus on the examination of existing research if any, which has aimed to identify a link or no link between performance management and controlling and developing employees.
While it is one of the tools of performance management, and the data produced can feed into other elements of performance management, appraisal by itself does not constitute performance management’.
Bach (2009) also states the difference between performance management and performance appraisal, ‘Advocates of performance management claim that its value resides in the cycle of integrated activities, which ensure that a systematic link is established between the contribution of each employee and the overall performance of the organisation. This strategic approach contrasts with the free standing nature of performance appraisals, in which the outcomes of each individual appraisal are rarely linked to overall corporate objectives’ (p291).
However, CIPD (2005) Survey report demonstrates that, the practice of performance management still largely revolves around objective setting and appraisal.
The confusion and overlapping in organizations between performance appraisals and performance management is evident form the above literature and surveys, however it still acts as a good tool for managers to control and develop employees.
Performance management is a cycle, an on-going process
Performance management is a cycle and for it to deliver desired results, it needs to be an on-going process. Conventionally, Performance management is