Performance Management is probably the most efficient leadership tool.
It is a systematic process with which an organisation mobilizes its employees as individuals and as members of its organisational segment or teams in direction of the productivity increase in the organisation in order to meet its mission and goals, while the performance improvement is a continuous process.
Mentioned characteristics make this process the most effective mean in increasing the productivity at all. It is based on “the management by objectives” – concept set by Peter Drucker and from its early beginning passed through numerous proofs in practice and important extensions.
One would find interesting that performance management could be observed and implemented at individual and team level or on the level of organization and based on its level performance management is opened as an HR issue or as a part of corporate governance. Actually, performance management should be the strategic issue of every organisation.
In terms of goals, relationship between organisational goals and goals of organisational units, teams and individuals is reached through cascading of coals.
Whether modern concepts like Balance Scorecard or Beyond Budgeting or simple concepts as yearly plans or budgets are considered, the main role is reserved for the goal either as an en expression of expectation or as an agreement of collaborators, so the unique measure of success become the comparison between set goals and performed results.