Adapting the Systems Model of Performance Management to major changes in the external and internal organisational environments

Abstract

In essence, this article discusses ways to ensure continued relevance of Performance Management in fast-changing environmental and organisational realities. It starts with the rationale for moving from performance appraisal to Performance Management. In view of some persisting problems with regard to Performance Management, a systems approach to help alleviate these problems is discussed. The current status of Performance Management is reviewed, based on international surveys and a recent report on the way Performance Management best-practice organisations utilise the system. In view of this information, the Systems Model of Performance Management is adapted. The paper is concluded with a discussion and recommendations for future research.