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What is Performance Management?

Accountability is the central concepts within which Performance management is situated. Armstrong (2000) defines performance management as a “strategic and integrated process that delivers sustained success to organisations by improving the performance of people who work in them and by developing the capabilities of individual contributors and teams.” (McAdam, 2005, p.257). Moullin (2002) and de Bruijn (2001) explain how the objectives of performance management are; rationalisation, more effective systems of financial accountability, greater transparency in the operation of these public institutions, upgrading of the skills base with modernisation of its functional principles, procedures and systems; and. the development of a realistic remuneration policy based on performance (Carlos, 2009, p731). To discuss the development of performance management, I could use many examples within the public sector however I am going to concentrate on three key examples: Local Government, Health services and Fire and Rescue Service. I will focus on the performance regimes in the UK since 1999.

Kloot & Martin (2000) made an important distinction between measuring performance and managing performance (Verbeeten, 2008, p431). Performance measurement is one aspect of performance management, it is the regular collection and reporting of data to track work produced and results achieved therefore informs performance management (Lichello, p9). Performance managing entails using performance measurement as a management tool to clarify goals, the contribution toward achieving those goals, and understand the benefits received from the investment in each program ( It is also important to understand Performance monitoring. Performance monitoring is concerned with using performance measurement systems as part of a performance management regime ( in order to continuously analyse results and to identify weak aspects that need...
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