Write an essay (2 – 3 pages) discussing the following:

  • the steps involved in the performance management process
  • the various purposes of performance management systems
  • the five criteria that measure the effectiveness of a performance management system



This paper explains the performance management process through its four stages of planning, assessment, and recognition and career development. It also provides insights to the importance of the performance management in today’s business world. Lastly, the paper explains the five criteria for performance measures that are specificity, acceptability, strategic congruence, validity and reliability.

The steps involved in the performance management process

Performance Management Process is acknowledged as a process through which a firm or an institute makes a workplace that engages representatives to work to the best of their capacities. The process that a business uses to finish this frequently fluctuates starting with one business then onto the next. The most widely recognized stages are planning, assessment, recognition, and career development (OPM, 2017). The phase of planning in this process deals with setting the objectives of accomplishments for the worker and talk about the normal level of performance for the occupation. The desires for any given worker will commonly rely upon the work they are doing or the division they are in. At the end of this stage both the representative and management must in conformity as far as what are underlying expectations. The second phase of the process is assessment in which a yearly assessment of the performance of employees is done. This regularly takes input from associates and customers into thought, notwithstanding perceptions by management (OPM, 2017). The third stage of recognition is tied in with perceiving the achievements of the employees and additionally any territories that need to be changed. Career Development is to advance and energize employees’ future change and development. It should address the issues of the firm; improve the worker’s strength and put in efforts to dispense with zones of shortcoming.

The various purposes of performance management systems

In the present working environment, performance management is an inexorably well known point. Business weights are perpetually expanding and associations are presently required to wind up noticeably much more successful and productive, execute better on business system, and accomplish more with less keeping in mind the end goal to stay focused which is altogether done through performance management (SAP, 2017). At the point when adequately actualized, performance management best practices result in an extensive variety of advantages for workers, supervisors and organizations. Objectives are the premise of a compelling process. Obviously imparting key business destinations is the initial step to making arrangement. A successful performance management process empowers directors to assess and measure singular performance and enhance profitability through adjusting singular representative’s everyday activities with key business destinations (SAP, 2017). The essential motivation to ensure performance management processes are working appropriately is to fix the connection between vital business goals and everyday activities. Compelling objective setting alongside appropriate calendars joined with a strategy to track advance and distinguish snags, adds to progress and main concern comes about. Consistently following advancement against performance objectives and targets likewise gives the chance to perceive and reward workers for performance and uncommon exertion, adding to work fulfillment and profitability. Workers need to feel fruitful, to do well at their occupation and feel they are making a profitable commitment which is done through performance management.

The five criteria that measure the effectiveness of a performance management system

The powerful performance management framework’s criteria that can be embraced in today’s business associations despite the fact that many have varied perspective of the criteria the most critical once can be recorded and classified as specificity, acceptability, strategic congruence, reliability and validity (Carter, 2016). Strategic congruence is the degree to the extent where performance management framework inspires work performance that is compatible with the overall strategic orientation of the firm. Validity manages delivering the coveted outcomes the degree that a performance measure evaluates the majority of the pertinent parts of performance. Reliability is a measure of the precision of a test or measuring instrument for reliably getting similar outcomes. Acceptability alludes to whether the general populations who utilize the performance measures acknowledge it. Ultimately, specificity deals with importance and relevance to the occupation the degree to which a performance measure tells representatives that what is anticipated from them and how those expectations can be met. 



Carter T. (2016). 5 Criteria of Performance Measures. Retrieved from:

SAP. (2017). Importance of Performance Management Process & Best Practices To Optimize

Monitoring Performance Work Reviews/Feedback and Goal Management.

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US Office of Personal Management. (2017). Performance Management Guide. Retrieved from: