State of the Practice in Performance Management
Performance management (PM) is one of the few organizational processes that touches every single employee and requires their active participation. In spite of its ubiquitous position in organizations, there has been a groundswell of questions emerging about the usefulness, value, and effectiveness of PM. This introductory chapter addresses the current state of PM, including its history. It provides an overview of academic research highlighting the evolution from performance evaluation to performance management and the current status. Then, the practical realities and challenges people in organizations experience with performance management every day are discussed. This includes performance management being viewed as an administrative “human resources activity” with a lack of strategic alignment to business goals; lack of manager capability to manage employee performance effectively; and an overreliance on system automation. The chapter continues with an outline and overview of the book, including nine case studies written by in-house talent and human resources practitioners and six chapters (written by scholars in the performance management and feedback arena) describing next-generation research as well as future research trends.