Performance management processes have come to the fore in recent years as means of providing a more integrated and continuous approach to the management of performance than was provided by previous isolated and often inadequate merit rating or performance appraisal schemes.
Performance management is based on the principle of management by agreement or contract rather than management by command. It emphasizes the integration of individual and corporate objectives as well as the initiation of self-managed learning development plans. It can play a major role in providing for an integrated and coherent range of human resource management processes that are mutually supportive and contribute as a whole to improving organizational effectiveness.
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