In the near past of local HR management, performance management didn’t exist as a concept, being assimilated by the evaluation of performance. In turn it consists in appreciating the degree in which the employee is fulfilling his/her responsibilities, in relation with the occupied position.

In modern acceptation (at least theoretical, as practice is kind of a killer), performance evaluation has become a component of an extremely complex system, called performance management.

What is performance management ad what good does it bring?

Performance management represents the sum of strategic interventions which influence on a long term the organization’s activity, leading to improved economical results. In fact we are talking about a set of actions especially thought to improve employee’s, department’s and the entire company’s results.

As an element of this system, performance evaluation represents a periodical retrospective analysis of the results obtained as a sequel to unroll the proposed strategies.

Besides evaluation, performance management also includes (in a simplistic scheme): defining the roles of each department/individual, setting parameters of performance (what performance defines); setting performance standards (which is the optimum level that indicates performance); communicating the roles, parameters and standards and last, but not least, ensuring a favorable environment for success.�

The difficulties of such intercessions come from the hardness of defining the concept of performance itself. Is performance a behavior which leads to good results or does it represent the results themselves, the effect of such behaviors? The answer is dual, the core of an efficient management of performance being both behavior parameters and expected, assumed and obtained results.

As for the behalves, even it may sound like a pleonasm the main benefit that comes from an efficient performance management system is the performance itself.

The factors that influence the performance management

In general it is considered that a company’s lack of performance is exclusively on account of its employees. However there is a series of internal and external factors that can disturb the results of an organization, like: organizational environment (there are relaxed companies and paranoid companies of which environment bloc individual initiative therefore success), the style of management (dictatorship generates less accomplishments than democracy),socio-economical environment in which the company activates (when the economic context is favorable, it’s obviously easier to be performing), direct and indirect competition (how numerous, how aggressive it is and what placement does it have). That’s why the performance management must be a continuous preoccupation of the entire managerial team and not only of the human resources department and must always have in site the general context, not only punctual elements.

What performance management is not?

As redundant as it may sound, I mention again that “performance management” isn’t synonym with “performance evaluation”. Between these two concepts is an inclusion relation, the first totally subsuming the second.

The performance management isn’t an action past oriented, based on analysis, but one oriented on the future, on development.

The performance management isn’t an ascertaining process, but a transforming one. It’s not sufficient to observe that you didn’t perform in the past, as to obtain better results in the future. Managerial interventions are needed, changes that can fulfill this thing.

The performance management isn’t a form of coercion or control. Its role is to optimize results, not to penalize individuals or departments.

The performance management isn’t an instrument for salary or benefits packages increase. Its role is to improve employee’s activity on long term, not to motivate them on short term.

The performance management isn’t a way of dumping unproductive employees. Even it is possible they become victims in case their performances constantly remain under the desired level the performance management isn’t proposing to get rid of employees but to increase productivity.