Human resource issues and challenges in performance based management

Performance management is a recurring construct in today's business world. Every organization manages for results across various levels in one way or the other. Performance based management purports to provide formal as well as informal performance-related information about employees to the management to ensure that individual efforts are directed towards overall organizational outcomes. The objective of this study is to outline major human resource issues in successful implementation of a performance management system. Selection of objectives to be met, selection of performance indicators, quality of data, adequate support from staff and top management, budget allocation, developing the right measures are some of the obstacles that have been identified. The research also aims to provide some recommendations for designing the performance management system in such a way that maximum benefits are realized.