Supervisors have conducted performance appraisals for years. Employees have attended training sessions for years. Organisation members have worked long, hard hours for centuries. Processes, such as planning, budgeting, sales and billings have been carried out for years in organisations. But all too often, these activities are done mostly for the sake of doing them, not for contributing directly to the preferred results of the organisation.

Performance management reminds us that being busy is not the same as producing results. It reminds us that training, strong commitment and lots of hard work alone are not results. The major contribution of performance management is its focus on achieving results -- useful products and services for customers inside and outside the organisation. Performance management redirects our efforts away from busyness toward effectiveness.

Recently, organisations have been faced with challenges like never before. Increasing competition from businesses across the world has meant that all businesses must be much more careful about the choice of strategies to remain competitive. Everyone (and everything) in the organisation must be doing what they're supposed to be doing to ensure strategies are implemented effectively.

This situation has put more focus on effectiveness, that systems and processes in the organisation be applied in the right way to the right things to achieve results.

An effective performance management and appraisal system is the cornerstone of all successful organisations. Appraisals are vital for assessment, improvement and motivation of staff and are essential when dealing with performance issues. Therefore, getting the right appraisal system is crucial for you so as to set objective goals, assess employee contributions, identify and retain top talent, and eventually rewarding employees on a performance basis.