Common Misconceptions about Performance Management

Common Misconceptions about Performance Management

18 Aug 2020

Many organizations, consultants, and writers often misconstrue the term Performance Management with the Annual Performance Appraisal.

The truth is performance management is much more than this! “Nothing in all the world is much more dangerous than sincere ignorance…”

Performance management is, of course, about performance. But what does the term mean?

It is important to clarify what it means because if  Performance management cannot be defined, it cannot be managed or measured (Bates and Holton,1995)


As a result of the common misconceptions about performance management, many organizations have missed out on reaping the benefits of good performance management. For this reason, it is very important to ensure that you have a good grasp of what an effective Performance Management entails so that you will be able to align and track your organization's goals.

Common Misconceptions about Performance Management

  1. Performance management deals with performance appraisals of employees.

  2. Performance management takes place once or twice a year.

 3. Performance management is only for managerial roles.

  4. Performance management is solely about self-evaluation.

  5. Performance management is only for individual employees.


What performance Management is?

According to Michael Armstrong in his Handbook of Performance management, “Performance Management is the continuous process of improving performance by setting individual and team goals which are aligned to the strategic goals of the organization, planning performance to achieve the goals, reviewing and assessing progress, and develop the knowledge skills and abilities of people”

Also according to Fowler (1990), “Performance management is about managing an organization. It is a natural process of management, not a system or a technique.”

These definitions clearly explain the concept of performance management, the way it is supposed to be and we can draw out some notable facts about Performance Management, which include


1.  Performance Management is a continuous process it doesn’t take place once or twice a year.

2.  It is aimed at improving individual and team performances

3.  It translates corporate goals into individual, team, department and divisional goals

4.  It creates an understanding of what is needed to improve performance and how it can be achieved.

5. The goal is to achieve the organizations, missions, and visions

6. The individual and team goals must be in alignment with the strategic goals of the organization.

7. It is a natural process of management, not a system or a technique.

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