The Past, Present, and Future of Performance Management

Performance management developed out of, and in part in reaction to, traditional performance appraisal systems. Despite frequent claims in the business press that performance appraisal is dying, fairly traditional appraisal systems are still common in work organizations. However, there is evidence of an ongoing shift toward performance management systems that differ from traditional performance appraisal systems in several important ways. The types of performance management systems exemplified in the case studies included in this volume place more emphasis on frequent, informal evaluation; real-time feedback; and alignment with organizational strategies and goals than is common in traditional appraisal systems. These types of performance management systems have a lot to offer, and the case studies illustrate the potential advantage of modern approaches to performance management. Unfortunately, these case studies also exemplify a deeply worrying trend in performance management: a frequent failure to even ask whether (much less to demonstrate that) performance management has any real effect on performance or effectiveness. Some recommendations are made regarding research strategies for evaluating performance management; several of the most pressing challenges in this endeavor are identified, notably the problematic status of feedback and the trade-offs involved when moving from formal appraisal systems to systems built around informal feedback.