The need for Performance Management
Organizations profit and loss statements are dependent on their revenues and in turn on their performance. Performance in the simplest terms can be defined as the execution of work of all kinds that exist in the organization. If the execution is carried out well then there is a rise in the performance and vice versa, so the need to measure performance becomes highly critical. Having given the theoretical explanation, the psychological explanation goes as follows. As humans, we all expect feedback for the work we do. This holds good for any scenario. When associated with an organization, we expect to hear from the experts that we are on the right or wrong path, the next course of action if any, on the associated perks or rewards. In this bargain, the organization also gets to identify the high, medium and low performances. This helps create hierarchy and balance in the system. The need for a performance management is thus very high in any organization/any context. Though there are