Performance Management 247
they should enhance the organization ’ s effectiveness. The performance
management process provides management with important information
for making strategic decisions on employee promotions, training and devel-
opment activities, compensation decisions, and retention or separation.
Employees who are performing at high levels in their positions should be
informed as to what career progression paths exist within their organiza-
tion so that career development activities can be planned. And employees
who fail to meet performance standards should be provided with training
or, if necessary, be dismissed. In today ’ s competitive environment, nonpro-
ductive employees cannot be tolerated.
Performance evaluations are used to support many HRM functions,
but because the appraisal process and instruments cannot serve all purposes
simultaneously, the organization must decide on the specifi c objectives
it wishes to achieve and then develop the appropriate instruments and
performance management system. Regardless of the type of instrument
used or the purpose of the evaluation, all raters must be trained.
Many researchers have suggested that traditional performance evalu-
ation systems that focus on individual performance be eliminated and
replaced with team approaches. Other researchers believe that indi-
vidual assessments complement team approaches because they foster
individual accountability and identify individual developmental needs
that benefi t the work team (Masterson & Taylor, 1996).