However, despite guidance on the main principles of performance management, every
organisation has to introduce performance management systems of their own to suit
their needs. The framework the theory stipulates will only help to form the basis on
which managers, individuals and teams should enter into performance agreements and
evaluations. The theories help to form the logical link between corporate strategic plans
and how individuals fit in realising the same through operational, annual action plans
and activities. Thus, performance management system will cover:
- Aspects of corporate vision, mission and values as they are linked to strategic busi-
ness objectives and to the desired performance management system. - The establishment of performance agreements and plans. Agreement of account-
abilities, tasks, objectives, knowledge, skill and competence requirements as part of
goal setting, within the context of employment contracts. See Appendix 6.1 on the
open performance appraisal form for the Tanzania public service. Agreement on
work plans and personal development and performance improvement action plans
(these can form part of a performance agreement). - Continuous management of performance throughout the year. This is a process of
getting regular feedback daily, weekly, and monthly. - Formal performance reviews. This covers the preparation by the manager and the
individual for the formal review at the middle of the year (usually in January) and
the annual performance review (at the end of June). The mid and annual perform-
ance appraisals are technical activities which require thorough preparation on the
part of the employee and immediate supervisor. - Development and training. This involves formal development and training pro-
grammes prompted by the performance review. Less formal development through-
out the year should take place in the form of coaching, counselling, on-the-job train-
ing and self-development activities (self-managed learning) - Rating. Although rating or ranking performance is common in any formal perform-
ance appraisal, in which different measurement instruments including the likert
scale of 1-5 points or grading ranging from A - D are used, this is not an ideal per-
formance management method because the subjectivity of the technique may over-
shadow the importance of focusing on performance improvement more than on
measurement. - Performance related pay. Performance related pay (PRP) – is again not always asso-
ciated with performance management, but because an increasing number of organi-
sations are introducing PRP, the link between performance, as measured by a per-
formance management process, and pay is becoming more common. However, deci-
sions on PRP may be made at a separate time from the performance review so as not
to prejudice the essential developmental nature of the performance management
process. - Performance measurement. This involves any process, which includes the collection
and analysis of outcome or performance data, providing comparative information
for assessing the progress towards the achievement of specific objectives (Marchand
& Raymond 2007). It can be done at the level of the individual task, department, or-
ganisation and country. For example, individual measurement may take place
through the annual performance appraisal process. Measurement at the country level
includes methods such as budget analysis, annual balance of payments figures etc.
Performance measurement is an overall description for a wide range of activities and
processes, which are used by a huge variety of people for different reasons. Accord-