IndexThe processPhase 1 - Development and planningPhase 2 - Performance managementPhase 3 - Rewarding performanceConclusionPerformance management is an integrated control system in which processes, activities, personnel and feedback are applied, it guarantees the result of an organization meets its objectives effectively where complex numerical concepts are easily communicated and put into practice. It is a continuous process of communication between employee and supervisor to reach their maximum potential, ultimately maximizing the performance of an organization. Creates a shared understanding of what and how is to be achieved; an approach to managing people to increase the likelihood of achieving career success. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an Original Essay In today's competitive global environment in which organizations operate, the need to retain and develop highly skilled employees is critical to prosperity and survival. Armstrong implies that performance management is an approach to achieving better results from teams and individuals by understanding and managing performance within an agreed framework of period, planned objectives, standards and attribute competency requirements. Bates and Holton argue that performance management is a multidimensional construct, the measurement of which varies based on a variety of factors, while Armstrong and Baroncan state that it can be defined as an integrated and strategic approach to achieving sustained organizational success with improved performance. A similar point of view was expressed by Nanni, Dixon and Vollmann stating that performance management represents systems of measurement and control that create information to be shared with: Aligning work with objectives; Develop employees; Motivate employees; Build employee loyalty; Evaluate internal-external user performance; Improving Performance; Holding Employees Accountable; Compensation Decisions; Termination Decisions; Registering for Legal Protection. ProcessPerformance management consists of six basic elements such as shared direction, alignment of objectives, continuous performance monitoring, continuous feedback, coaching and development support, recognition and rewards. It might be noted, according to March and Sutton, that “performance” and “effectiveness” are put together interchangeably because the problems relating to their definition and measurement are practically identical. Shenhav, Shrum, and Alon argue that the two concepts cannot be independent, effectiveness and performance contribute to the literature interchangeably, so performance has become the dominant concept. The Human Resources and Organizational Effectiveness Division recognizes four key elements of performance management as the PCER model: Planning, Coaching, Evaluation and Rewarding. According to Schneier, Beatty and Baird, a performance management system is classified into a development, planning, management, review and reward phase. Phase 1 - Development and Planning Planning is the first phase in the performance management system and provides the foundation for an effective process which should be treated very carefully. Armstrong and Baron point out that objectives or goals describe something to be accomplished by individuals, departments, and organizations in an agreed upon period of time. Similarly Rogers and Hunter stated that goal setting is the most fundamental aspect for an organization. In this planning phase, managers and subordinates participate in a process to establish individual and business goals.