Performance management: Problems and probable solutions

Performance management is a process for establishing shared understanding about what is to be achieved, and an approach to managing and developing people in a way that increases the probability that it will be achieved in the short-and long-term”(Armstrong,1995). Emerged in later half of 1980s, it incorporates performance appraisal as one of the most important elements. It is the process of appraising the performance of subordinates by supervisors against preset objectives. No matter how strong is their design, most performance appraisals are executed so poorly that they may actually lead to more problems than solutions. The performance appraisal related problems are detrimental to employees’ morale and ultimately affect their performance. This article explores the problems related to performance appraisal and discusses the probable solutions to these problems based on literature review and formal and informal discussions with the practioners in Indian organizations across industries. It is expected that it provides a deeper understanding of the appraisal related problems and their solutions.