The Importance of Using Appropriate Performance Management to Improve Employee Performance

Abstract

The purpose of this study is to clarify what is meant by “performance management concept” and its importance in improving the business performance. This is a conceptual study based on critical reviewing of academic literature and practices about performance management, its objectives, and priorities. Moreover, this study aimed at explaining, evaluating, and proposing arguments for using appropriate performance management techniques, rewards, and reasonable penalties to improve employees’ performance, and thus business performance. The study findings indicated that one of the main trends in Performance Management is the shift of ownership of performance management from Human Resources to line managers. Also, Human Resources department should manage the Performance Management differently depending on different demographics and multicultural contexts. In addition, commitment of organization to high performance management levels requires a set of policies and procedures to manage performance management processes