Performance Management: Key to organisation success.

This dissertation outlines the process of seeking views and opinions on how the existing performance management process operates within a medium-sized software development company. The company is reaching a stage in its development (moving from 'Entrepreneurial' to 'Growth' phase) that requires greater control and coordination of its goals and objectives. As the goals and objective of the company have become more complex, the emphasis on the performance management process needs to shift from a 'reactive' attitude to managing performance, to a more active approach where development, career progression, motivation and morale issues have to be managed. Performance management needs to change from being a one off yearly appraisal to being a 'strategic and integrated process that delivers sustained success to the organisation' (Armstrong, M. 2002 p. 1). A number of questions were put to staff to elicit their views on the current system in order to analyse the shortfalls in our system against common practice. The research finding outline a number of issues in the current system which require attention in order to ensure that the company continues to operate as an employer of choice, and retains employees who have the ability to make a significant difference to the success of the business. Top management support will be required in order to implement the initiative which will predominantly focus on training and development activities, both in relation to the performance management process, and also in relation to employee development within the company