“Performance management is the use of performance data to affect organizational culture, systems, and processes, set goals, allocate resources, affect policies and programs, and share results (Schwind, Das, & Wagar, 2010).” The human resource department has a huge effect on how well the organization develops and maintains a sound performance management program (Schwind, Das, & Wagar, 2010). These particular systems have some standards including; simple to use, simple to understand and, simple to apply (Schwind, Das, & Wagar, 2010). This way management can easily measure an employee’s performance and while providing employees incentive to improving are specific things in their reviews. Performance management work requires several characteristics to ensure that management is evaluating their employees fairly, and by the standards set by Shoppers Drug Mart. The characteristics include; Performance Objectives: A critical aspects of a company’s strategy, if not met, may result in lower customer satisfaction and other less desirable organizational results. Performance Goals: Achievable and realistic targets to which actual outcomes can be compared. Performance Measurement: Measuring the process of achieving preset goals, including the efficiency of transforming resources into goods and services, their quality, client satisfaction, quality of decision making, and efficiency and effectiveness of management contributions. Output Measures: Quantity and quality assessments.
Outcome Measures: Results of programs compared to preset targets. (Schwind, Das, & Wagar, 2010) Shoppers Drug Mart has created their job descriptions and performance evaluations to ensure that all of the previous characteristics will be met. The use of these performance appraisals includes; performance improvement, compensation adjustments, placement decisions, training and development needs, and job design errors to name a few (Schwind, Das, & Wagar, 2010).