Performance management is considered as the heart of any “people management” issue in an organization. It encompasses the entire relationship of the organization with its employees. PM is the process of creating a work environment where people are encouraged to perform to their fullest potential and rewarded for their effectiveness. It is a broader work system that begins when proper job descriptions are developed and expectations areC clearly communicated to the employee and ends when he leaves the company.

Thomas `Wayne' Brazell once rightly remarked, "When your work speaks for itself, get out of the way." Organizations today survive on performance. But what speaks for the performance of an individual? It is a process known as the performance appraisal where the management gets to know how successful and effective it has been in hiring and placing its employees. Of late, a holistic approach towards appraisal by the name of performance management, which has been making news in the HR circles, aims to democratize the process.

The focus on teamwork and reward to teams, Kaizen approach to work or continuous improvement, learning and relearning and various others has led several organizations to restructure their approach to appraisal. In an attempt to better understand and attach values to their human assets, companies have modified their performance appraisal systems. Meritocratic organizations in India have woken up to the fact that the system that manages performance has to be transparent and appreciate the workforce that brings the need to learn and reduces the `favoritism' practices at workplace. Performance Management System (PMS) unlike traditional Performance Appraisal System (PAS) emphasizes on the supervisor's role to go that extra mile and not only judge but also help the supervisees to put in their extraordinary performances to achieve the targeted goals. As a result, many companies adopt either one or a multitude of approaches towards appraising their employees. Of these, assessment centers, MBO approach, 360-degree appraisal, balanced scorecard, competency management and psychological appraisals are a few important ones that are worth discussing in the Indian context.

HRM Review Magazine, Performance Management Systems, PMS, Performance Appraisal System, PAS, Assessment Development Centers, ADCs, Decision-Making Process, E-learning, Talent Reviewing Planning Process, Human Resource Inter Divisional Committee.