The Importance of Implementing Performance Management System in Romanian Firms

To understand the importance of Performance Management (PM) we can start from the answers to the question: What distinguishes the “best” companies \ from the rest? Many writers and consultants are using the term “performance management” as a substitution for the traditional appraisal system. Performance management is the process of creating a work environment or setting in which people are enabled to perform to the best of their abilities. Performance management is a whole work system that begins when a job is defined as needed and it ends when an employee leaves your organization. Within such a system, feedback to each staff member occurs regularly. Individual performance objectives are measurable and based on prioritized goals that support the accomplishment of the overall goals of the total organization. The vibrancy and performance of the organization is ensured because it focuses on developmental plans and opportunities for each staff member.