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Chapter

Performance Management:
A New Approach in Performance
Management
Faozen Faozen and Shah Riza Octavy Sandy

Abstract

Performance management is the process of planning, supervising, and improving

the performance of individuals, teams, and the organization. The goal is to increase
productivity, set performance goals, measure performance, provide feedback, develop
performance, and support effective decision making. In performance management,
new approaches that are more oriented towards employee development and engage-
ment have replaced traditional approaches that focus on evaluation and control. This
research methodology is based on literature review and discusses competency-based
approaches, goals, and continuous feedback. Employee involvement in performance
management provides benefits such as increased satisfaction, motivation, individual
and team performance, skill development, communication, collaboration, and the
formation of a motivating culture. Recognition and reward are also important in
performance management, as they can improve employee motivation, performance,
retention, and long-term contribution in the organization.

Keywords: performance management, competency, employee engagement,

recognition and reward, productivity, periodic performance appraisal, performance
development

1. Introduction

Performance management refers to the process of planning, supervising, and

improving the performance of individuals, teams, and organization. This involves
identifying performance goals, measuring results, providing feedback, and man-
aging performance development and improvement. Performance management
focuses on how to achieve organizational goals through effective and efficient
performance.
In general, the definition of performance management is a managerial activity that
aims to ensure that organizational goals have been achieved consistently in various
effective and efficient ways.
There are also those who define work management (MK) as an activity to ensure
that organizational goals are achieved consistently through the process of planning,

1
Human Resource Management – An Update

implementing, evaluating, and evaluating the performance of the organization’s

tools. Performance Management is not only related to the performance of employ-
ees personally, but also related to the performance of an organization. In other
words, MK is closely related to work processes and results based on the strategic
objectives of an organization, namely customer satisfaction and contributing to
the economy.
According to Bacal [1] the definition of performance management is continuous
communication and carried out in partnership between an employee and his direct
supervisor. This process includes building clear expectations and understanding of
the work to be done. While Armstrong [2] performance management is a strategic
and integrated approach to deliver sustainable success to organizations by improving
the performance of employees who work in them and by developing the capabilities
of teams and individual contributors.
According to Costello [3] performance management is the basis and driving force
that is behind all organizational decisions, work efforts, and resource allocation.
According to Schwartz [4] performance management is a management style based on
open communication between managers and employees regarding the achievement
of goals providing feedback from managers to employees and vice versa, as well as
performance appraisal. According to Baird [5] the definition of performance manage-
ment is a work process of a group of people to achieve predetermined goals, where
this work process takes place continuously and continuously.
From the above understanding, it can be concluded that performance management
is continuous communication between employees and superiors, building expecta-
tions and understanding of work that has a strategic approach to developing employee
performance and team capabilities, from that performance management becomes
the basis of organizational decisions, efforts, resource allocation through continuous
work processes to achieve goals set by individuals in the organization.
In addition, performance management is also important in terms of company
administration which involves various interrelated aspects. This management also
plays a role in managing human resources to achieve company goals. Without good
human resource management, business success will be difficult to achieve.
Performance management also serves to develop employee capacity. Through
training, underperforming employees can be improved. Performance management
also helps improve the company’s work system and improve employee performance.
The benefits of performance management include company leaders who can
have a well-thought-out plan and measure individual and team performance. For
companies, performance management is useful for progress and continuous improve-
ment. For employees, performance management helps focus and improve ability and
performance.
In conclusion, performance management and human resource management have
an important role in achieving company targets and goals. This management not only
has a financial impact, but also on the human resource aspect.
This research methodology is based on literature review and discusses compe-
tency-based approaches, goals, and continuous feedback. Employee involvement
in performance management provides benefits such as increased satisfaction,
motivation, individual and team performance, skills development, communica-
tion, collaboration, and the formation of a motivating culture. Recognition and
reward are also important in performance management, as they can improve
employee motivation, performance, retention, and long-term contribution in the
organization.
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2. Performance management objectives

a. Increase productivity: One of the main objectives of performance management

is to increase the productivity of individuals and the organization as a whole.
Through effective performance management, organizations can identify and
eliminate barriers that hinder optimal performance, as well as develop strategies
to increase work productivity.

b. Defining performance goals: Performance management helps in setting clear and

measurable goals for individuals, teams, and organizations. By setting specific
and measurable goals, performance management enables stakeholders to under-
stand what is expected of their performance and provides clear direction for
achieving desired outcomes.

c. Measuring performance: Performance management involves measuring the

performance of individuals, teams, and organizations. Through the use of appro-
priate performance metrics and indicators, performance management helps in
evaluating the extent to which objectives have been achieved and provides insight
into strengths and weaknesses that need to be improved.

d.Providing feedback: One important component of performance management is

providing clear and targeted feedback to individuals and teams. Good feedback
helps in identifying strengths that need to be maintained and developed as well
as areas that need improvement. By providing constructive feedback, perfor-
mance management allows individuals and teams to grow and improve their
performance.

e. Performance development: Performance management also plays a role in

managing the development of individual and team performance. It involves
drafting a development plan that identifies training, education, or other develop-
ment opportunities to help individuals reach their full potential. Through this
approach, performance management supports professional growth and indi-
vidual empowerment.

f. Decision making: Performance management provides the data and information

necessary for effective decision making. By having a good understanding of
individual and team performance, management can make decisions regarding
promotions, rewards, career development, or structural changes necessary to
improve the overall performance of the organization.

Performance management is an important tool to achieve targets or goals that have

been set. With this management, the achievement and implementation of targets can
be carried out optimally. Performance management helps evaluate employee perfor-
mance through feedback provided by superiors.

3. Traditional vs. new approaches in performance management

Performance management is an important part of organizational management

that aims to improve the performance of individuals, teams, and the organization.
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Human Resource Management – An Update

However, there are differences in traditional approaches and new approaches to

performance management practice.
Traditional approaches to performance management tend to focus on evaluat-
ing performance based on quantitative measures, such as sales targets or individual
productivity. Evaluations are conducted periodically, often in the form of annual
assessments, and feedback is provided by the immediate supervisor. This approach
places more emphasis on control and supervision.
On the other hand, the new approach in performance management is more
oriented towards individual development and collaboration. This approach empha-
sizes open and continuous communication between managers and employees, as well
as an emphasis on learning and growth. Performance evaluation is not only carried
out periodically, but also through feedback provided continuously and in relevant
situations.
New approaches in performance management also include the use of digital
technologies and tools that enable real-time data collection, more accurate perfor-
mance monitoring, and in-depth analysis. In addition, this approach encourages
active participation of employees in goal setting, planning, and evaluation of their
performance.
Another difference between the traditional approach and the new approach is
the shift in focus from performance appraisal to performance development. The
new approach recognizes the importance of identifying individual strengths and
weaknesses, as well as providing opportunities to develop the necessary skills and
competencies.
In adopting a new approach in performance management, companies need to
change the organizational culture, ensure management support and commitment,
and provide the necessary training and guidance. The integration of technology
and the use of appropriate tools are also important factors in the success of this new
approach.
Overall, the new approach in performance management offers a more inclusive
approach, focuses on individual development, and enables continuous improve-
ment. In the face of constant challenges and changes, organizations need to consider
these new approaches to achieve better performance and meet the increasingly high
expectations of employees and customers.

3.1 Comparison between traditional approaches and new approaches in

performance management

Traditional and new approaches are two different approaches in performance

management. Traditional generally refers to methods that have been around for a
long time, while new approaches are emerging in response to the changing business
environment that is increasingly dynamic. Here is a comparison between the two:

3.1.1 Focus

Traditional: The traditional approach focuses more on periodic performance evalu-

ations, such as annual or semiannual appraisals. The goal is to identify employees’
strengths and weaknesses and provide feedback on their performance.
New approach: The new approach focuses more on continuous, real-time perfor-
mance management. In this approach, feedback and evaluation are continuous, so
improvements can be made quickly and responsively.
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3.1.2 Orientation

Traditional: Traditional approaches tend to be more oriented towards appraisal

and rating of employee performance. Target achievement and comparison between
employees are the focus.
New approach: The new approach is more oriented towards employee development
and improving overall performance. The focus is on improving employees’ skills and
competencies and facilitating professional growth.

3.1.3 Employee engagement

Traditional: Traditional tends to involve little employee involvement in the perfor-

mance management process. Feedback often only comes from superiors and perfor-
mance appraisals are conducted unilaterally.
New approach: The new approach encourages active employee involvement in
performance management. Employees have a more active role in identifying goals,
drawing up action plans, and providing feedback on themselves.

3.1.4 Use of technology

Traditional: Traditional approaches often rely on manual processes and physical

documentation. Performance appraisals are usually done through written forms.
New approach: The new approach leverages technology, such as cloud-based appli-
cations, online collaboration tools, and digital performance management software.
This makes it easy to monitor, real-time feedback, and track performance electroni-
cally [6–8].
In conclusion, traditional and new approaches in performance management have
differences in focus, orientation, employee engagement, and use of technology. The
new approach emphasizes continuous performance management, employee develop-
ment, active engagement, and technology utilization. Companies need to consider
their own context and need to choose the appropriate approach to effectively achieve
organizational goals.

3.2 Disadvantages of traditional approaches and advantages of new approaches

The traditional approach in performance management has been used for many
years, but it has some drawbacks worth noting. On the other hand, new approaches
in performance management offer various advantages that can improve the effective-
ness and efficiency of the performance management process. Here is an overview
of the disadvantages of the traditional approach and the advantages of the new
approach:
Disadvantages of the traditional approach:

1. Limited evaluations: Traditional approaches often use limited performance

evaluations, such as annual or semiannual appraisals. This results in a picture of
performance that is not always accurate or relevant to current conditions

2. Unresponsive: Traditional approaches tend to be unresponsive to necessary

changes and improvements. Feedback is only provided periodically, so perfor-
mance adjustments cannot be made in real-time.
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Human Resource Management – An Update

3. Focus on shortcomings: Traditional approaches often focus more on highlighting

employees’ weaknesses than leveraging their strengths. This can hinder individual
growth and development [1, 9].

Advantages of the new approach:

1. Continuous performance management: The new approach offers continuous,

real-time performance management. Feedback is provided regularly, allowing
for immediate correction and improvement in employee performance [10].

2. Focus on development: The new approach is more oriented towards employee

development. It pays attention to individual strengths and potential, as well as
providing opportunities for career growth and upskilling [11].

3. Collaboration and participation: New approaches encourage collaboration

between superiors and employees. Employees have a more active role in setting
goals, planning actions, and providing feedback on their own performance [12].

4. Flexibility: The new approach allows flexibility in performance appraisal. It

can take into account different work contexts, encompassing diverse duties and
responsibilities [13].

By utilizing new approaches in performance management, companies can over-

come the weaknesses of traditional approaches. The new approach offers better
responsiveness, a focus on employee development, greater participation, and the
ability to tailor assessments to individual needs and work contexts. Thus, companies
can achieve better performance and achieve organizational goals more effectively.

4. Competency-based approach

4.1 Basic concepts and principles of competency-based approach in performance

management

A competency-based approach in performance management is an approach

that describes the abilities, knowledge, and behaviors of individuals relevant to the
work performed. According to Boyatzis [14] a competency-based approach involves
identifying, measuring, and developing individual competencies as the basis for
achieving organizational success. Competencies include knowledge, skills, attitudes,
and personal characteristics relevant to the work performed.
According Spencer [15], the process of competency identification involves job
analysis to identify the competencies required in achieving desired results. It involves
an in-depth understanding of the duties, responsibilities and requirements of the job as
well as engaging relevant stakeholders. In a competency-based approach, competency
measurement is done through holistic assessment. It involves direct observation, inter-
views, tests, and performance evaluations that focus on desired competencies [15].
Competency measurement is done through holistic assessment, including direct
observation, interviews, tests, and performance evaluations. This allows objective
measurement of the competencies that individuals possess [16]. This approach also

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involves ongoing competency development efforts. Development programs are

designed to improve underdeveloped competencies and strengthen existing ones.
This can include training, formal learning, mentoring, and work experience [16].
The competency-based approach encourages continuous competency develop-
ment through training, formal learning, mentoring, and work experience. It helps
individuals improve underdeveloped competencies and strengthen existing compe-
tencies [15]. According to Ulrich and Brockbank [17] a competency-based approach
emphasizes the importance of organizational integrity in identifying, measuring,
and developing competencies. The competencies identified should be relevant to the
strategic objectives of the organization, and the performance management process
should be grounded in the principles of fairness, objectivity, and transparency.
Linkage to Organizational Goals ensures that competencies measured and devel-
oped are in line with organizational goals. The competencies required by employees
should support the strategy and success of the organization as a whole [17].
The advantages of a competency-based approach bring several advantages,
including a clearer understanding of job expectations, more effective selection and
placement of employees, targeted career development, and better performance and
individual adaptability in the face of change [15].

5. Goal-based approach

5.1 Principles and steps of a goal-based approach in performance management

A goal-based approach in performance management is a method that focuses

on setting specific goals, measuring performance based on goal achievement, and
developing and providing feedback to improve performance. The following are the
principles and steps of a goal-based approach in performance management.
Principles of a goal-based approach

1. Goal agreement: The goals set should be mutually agreed upon between superiors
and subordinates to increase engagement and motivation.

2. Specific and measurable: Goals must be clear, specific, and measurable in order
to be objectively evaluated.

3. Challenging and realistic: Goals should be challenging yet realistic in order to

encourage employees to achieve better results.

4. Specified time: Each goal should have a set time limit to ensure accountability
and effective monitoring.

Steps of a Goal-Based Approach:

1. Goal setting: Superiors and subordinates work together to set goals that are spe-
cific, measurable, and related to duties and responsibilities.

2. Monitoring and measurement: The performance of an individual or team is mea-

sured regularly based on the achievement of predefined goals.

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Human Resource Management – An Update

3. Feedback and evaluation: Constructive feedback is given to individuals or teams

based on the results of performance evaluations to assist in improvement and
development.

4. Development planning: Through the identification of development needs,

individual or team development plans are created to improve competencies and
performance in the future [13, 18, 19].

By implementing a goal-based approach in performance management, organiza-

tions can create a clear focus, increase accountability, and drive better goal achieve-
ment individually and in teams.

5.2 Menetapkan tujuan SMART (specific, measurable, achievable, relevant,

time-bound)

Setting SMART goals is an effective approach to performance management to

ensure goals are clear, measurable, achievable, relevant and time limited.
SMART objectives:

1. Specific: Goals should be clear, focused, and specific in order to give individuals
or teams clear direction.

2. Measurable: Objectives must be quantitatively or qualitatively measurable in

order for progress and achievement to be assessed objectively.

3. Achievable: Goals should be realistic and achievable with available resources and
capabilities.

4. Relevant: Objectives must be relevant to the organization’s tasks, responsibilities,

and strategies to ensure a significant contribution.

5. Time-bound: Each goal should have a set time limit in order to have clear moni-
toring and increased accountability.

Steps to Setting SMART Goals:

1. Define objectives: Set objectives clearly and in detail to provide a common

understanding to all relevant parties.

2. Set measurement criteria: Define measurable indicators to clearly evaluate the

achievement of goals.

3. Feasibility and achievement evaluation: Consider the availability of resources

and capabilities to achieve the goals set.

4. Relevance to context: Ensure that the goals set support the organization’s overall
vision, mission, and strategy.

5. Set time limits: Set specific deadlines for achieving set goals [20–22].

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By applying the SMART goals approach in performance management, organiza-

tions can ensure clear, measurable, and effectively achieved goals. This helps improve
focus, performance, and achieve better results for individuals and teams in the
organization.

6. Continuous feedback-based approach

A continuous feedback-based approach is a strategy in performance management

that emphasizes the importance of continuous and continuous feedback in improving
individual and overall organizational performance.
Continuous Feedback-Based Approach:

1. Feedback continuity: This approach promotes providing feedback on an ongoing

and regular basis, not just during annual assessments or special events.

2. Engagement and communication: Involves interaction between superiors and

subordinates in providing feedback, as well as facilitating open dialog to improve
understanding and problem solving.

3. Continuous improvement: This approach aims to encourage continuous

improvement through feedback provided periodically, so that individual and
organizational performance continues to improve.

4. Skills development: Provide in-depth and specific feedback to aid the develop-
ment of individual skills and competencies.

Benefits of a continuous feedback-based approach:

1. Performance improvement: By getting feedback continuously, individuals can

gradually improve their skills, understanding, and performance.

2. Potential development: Regular feedback helps identify an individual’s

development potential and provides appropriate direction to optimize that
potential.

3. Improved relationships: Open communication and constructive feedback can

improve the relationship between superiors and subordinates, creating a positive
work climate.

4. Strategy adjustment: Continuous feedback helps organizations to adjust the

strategies and tactics used in achieving business objectives [13, 23, 24].

By applying a continuous feedback-based approach in performance manage-

ment, organizations can create a culture focused on learning, development,
and continuous improvement. This provides individuals with the opportunity
to continuously improve their performance and helps the organization achieve
higher goals.

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Human Resource Management – An Update

6.1 Why continuous feedback is important in performance management

Continuous feedback is an important element in performance management that

plays a role in improving the quality of individual performance and achieving organi-
zational goals. According Anseel et al. [23] the database continuously provides specific
and clear information to individuals about their performance. This allows them to
correct weaknesses, strengthen strengths, and direct their efforts in a more effective
direction. Continuous feedback helps individuals to identify areas of development
that need attention. By getting constructive and continuous feedback, individuals can
focus on developing relevant skills and improving their competencies [24].
According DeNisi et al. [25], continuous feedback can provide a motivational
boost to individuals. When individuals feel that their performance is recognized and
valued, they will feel more motivated and engaged in achieving organizational goals.
Continuous [24] feedback helps individuals to make adjustments and improvements
in their work. By gaining information about successes and failures, individuals can
take the necessary corrective actions to improve their performance. Continuous feed-
back facilitates open communication between superiors and subordinates. This allows
for the creation of stronger, understanding, and collaborative working relationships,
which in turn affects the success of the team and the organization as a whole [23].
By providing quality continuous feedback, organizations can improve individual
performance, motivate employees, and achieve set goals. Constructive and continu-
ous feedback is key in creating a culture of learning and continuous improvement in
performance management.

6.2 Techniques and practices of providing effective feedback

Providing effective feedback is an important skill in performance management.

The process of providing good feedback can affect an individual’s motivation,
development, and performance. The following are some techniques and practices for
providing effective feedback.

a. Choose the right time: Choosing the right time to give feedback is crucial. Choose
the right moment where the individual can receive feedback openly and not feel
threatened or stressed [26].

b. Be specific and focused: Effective feedback should be specific and focused on the
observed behavior or performance. Avoid general or ambiguous feedback that
does not provide clear clues about what needs to be improved or improved [24].

c. Given regularly: Providing feedback regularly helps build an ongoing feedback

culture. Feedback provided regularly and consistently allows individuals to make
continuous improvements and improve their performance over time [23].

d. Based on observation: Providing feedback based on direct observation or real obser-

vation will provide a solid foundation. Make objective observations about individual
performance and provide concrete examples to support that feedback [23].

e. Focus on behaviors and outcomes: When providing feedback, focus on concrete

behaviors and observable outcomes. Avoid giving direct judgments of individuals,
but provide feedback related to actions and their impact [27].
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Performance Management: A New Approach in Performance Management
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f. Objective and fact-based: Make sure the feedback provided is objective and based
on measurable facts. Avoid subjective judgments or assumptions that can lead to
conflict or dissatisfaction [25].

g. Positionative and constructive: Effective feedback not only focuses on weak-

nesses or problems, but also recognizes individual achievements and strengths.
Convey feedback with a positive attitude and offer constructive solutions or
suggestions to improve performance [25].

h.Use a positive and constructive approach: Convey feedback with a positive and
constructive approach. Give appreciation for good achievements and show
support in helping individuals develop themselves [26].

i. Focusing on improvement: The main purpose of providing feedback is to assist

individuals or teams in improving their performance. Therefore, ensure that the
feedback provides constructive suggestions and solutions for implementable
improvements [24].

j. Immediate and routine: Providing feedback immediately after an event or

situation can help improve understanding and improve performance quickly. In
addition, it is also important to provide feedback regularly as part of continuous
communication [24].

k. Given with an empathetic attitude: Providing feedback with an empathetic and

understanding attitude can help reduce an individual’s defenses or resistance.
Listen carefully, show understanding, and convey feedback in polite and respect-
ful language [23].

l. Provide opportunities for dialog: Create an atmosphere of open dialog and

encourage individuals to participate in discussions about feedback. By listening
to their perspectives, you can gain a better understanding and assist in designing
effective remedial actions [27].

m. Give opportunity for response: In providing feedback, give individuals the

opportunity to give their feedback or opinion. By engaging individuals in
two-way dialog, it can build better understanding and increase engagement [23].

By using effective techniques and practices in providing feedback, managers and

leaders can assist individuals in developing their potential, improving performance,
and achieving the goals set in performance management.

7. Employee engagement in performance management

7.1 The importance of employee involvement in the performance management

process

Employee engagement is a key factor in achieving successful performance manage-

ment in an organization. When employees are actively involved in the performance
11
Human Resource Management – An Update

management process, they feel a responsibility towards achieving organizational

goals and are driven to improve their performance, why is employee engagement such
an important factor in performance management? According to Locke and Latham
[28], employee involvement in the performance management process can increase
their level of satisfaction and motivation. Involving employees in goal setting, per-
formance monitoring, and appraisals provides a sense of ownership to their work,
increases intrinsic motivation, and creates a more positive work climate. According
to Bakker et al. [29], employee involvement in the performance management process
can increase motivation and job satisfaction. When employees feel empowered and
involved in goal setting, performance appraisals, and career development, they feel
valued and have control over their future within the organization. Involving employ-
ees in the performance management process can increase their job satisfaction. This is
because they feel heard, have an active role, and have the opportunity to contribute to
setting goals and designing action plans to achieve expected results.
Employees involved in the performance management process tend to be more
motivated and engaged in their work. They feel a sense of responsibility and personal
involvement towards achieving organizational goals, which can increase morale and
productivity. According to DeNisi and Pritchard [30], through involvement in the
performance management process, employees have the opportunity to develop their
skills and potential. With open dialog between employees and managers, there can be
an exchange of knowledge, constructive feedback, and identification of development
needs to improve performance. Through involvement in the performance management
process, employees have the opportunity to identify and develop competencies necessary
to achieve organizational goals. The dialog and feedback process provides an opportunity
to identify strengths and areas of development that need attention. Through open dialog,
employees can convey expectations, needs, and problems at hand, while managers can
provide the guidance, feedback, and resources necessary to effectively achieve organiza-
tional goals [31]. Involving employees who have knowledge and experience in their field
in evaluating performance, setting goals, and formulating action plans can lead to better
and more informed decisions. According to Macey and Schneider [32] by providing
participation opportunities to all employees, regardless of level or position, organizations
encourage fairness, diversity, and a strong sense of ownership among team members.
Employee involvement in the performance management process can increase their
level of satisfaction and motivation. Involving employees in goal setting, performance
monitoring, and appraisal provides a sense of ownership of their work, increases
intrinsic motivation, and creates a more positive work climate [28]. Through active
participation in goal setting, work planning, and evaluation, employees can have a
clearer understanding of organizational expectations and goals, and can identify
opportunities for development and performance improvement [30] open communi-
cation between managers and employees, employees can get constructive feedback
and get information about development, training, and promotion opportunities that
can advance their careers, pay attention to perspectives and input from employees,
managers can combine diverse views and knowledge that contribute to better and
more accurate decision making [33]. By providing opportunities for employees to
participate, share ideas, and provide input, organizations can build strong relation-
ships between employees and management, improve mutual communication, and
strengthen the spirit of cooperation [34].
By involving employees in the performance management process, organiza-
tions can create a motivating culture, build strong relationships between employees
and managers, a more productive work climate, improve individual and team
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performance, motivate employees, and build a collaborative culture that supports

the achievement of overall organizational goals and improves individual and overall
organizational performance.

7.2 Encourage active employee participation in setting goals and planning

performance development

Active participation of employees in setting goals and planning performance

development is an important factor in achieving successful performance manage-
ment. When employees are actively involved in this process, they feel a sense of
responsibility and are highly motivated to achieve organizational goals. Actively
involving employees in setting goals and planning performance development is an
important practice in effective performance management. When employees are
involved in this process, they feel a personal responsibility towards achieving goals
and have the opportunity to develop their skills and potential. Employees who have
the opportunity to participate in setting goals and planning performance develop-
ment, feel ownership of those goals. This can increase intrinsic motivation and desire
to achieve desired results [35]. According Locke and Latham [28], when employees
have the opportunity to participate in setting their own goals, they feel more involved
and have higher motivation to achieve desired results. This can increase employee
engagement in their work and affect performance positively.
In the process of participation, employees have the opportunity to identify the
development needs of their skills and potential. They can contribute in planning
training, self-development or assignments that can help them achieve better perfor-
mance [36] in setting goals and planning performance development, there is better
interaction and communication between employees and managers. This helps build
strong relationships, increases engagement, and allows for a constructive exchange of
ideas and feedback [37].
Employee participation in setting goals and planning performance development
brings diverse perspectives and innovative thinking into the process. It can improve
the quality of goals and plans made, as it involves the collective thinking of individu-
als who contribute to the achievement of organizational goals [38].
By involving employees in setting goals and planning performance development,
organizations create opportunities for employees to feel a sense of commitment to
organizational goals and values [39]. This can result in higher retention rates and
create a more solid work environment.
Active participation of employees in setting goals and planning performance
development provides an opportunity for them to identify necessary areas of devel-
opment and take concrete steps to improve their skills [25]. This can help employees
reach their maximum potential and support their career growth. Through participa-
tion in goal setting and planning performance development, employees and managers
can engage in open dialog and information sharing [40]. It can improve communi-
cation and collaboration between employees and managers, help strengthen team
relationships, and optimize overall performance.

8. Periodic performance planning and appraisal

Periodic performance planning and appraisal is an important practice in per-

formance management to measure and evaluate the achievement of objectives and
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Human Resource Management – An Update

employee performance periodically. This process involves setting clear goals, moni-
toring progress, providing feedback, and conducting systematic performance evalu-
ations. There are several important things about planning and periodic performance
appraisals:

1. Setting clear goals: Periodic performance planning helps organizations set specific,
measurable, and affordable goals [19]. With clear goals, employees have better
guidance in carrying out their duties and focus on achieving desired results.

2. Measuring progress: Through periodic performance appraisals, organizations can

measure the progress achieved by employees in achieving their goals [41]. It pro-
vides important information about the extent to which employees
have achieved their goals and helps identify areas where improvements are needed.

3. Identify development needs: Periodic performance appraisals also help identify

employee development needs. By looking at current performance achievements,
organizations can determine the training and development needed to improve
employee skills and competencies [41]. This helps create relevant and effective
development programs.

4. Directing employees towards goals: Periodic performance planning helps direct

employees towards achieving predefined goals. By planning specific, measurable
goals, employees have clear guidance on what is expected of them and can focus
on relevant tasks [42].

5. Improve employee performance: Periodic performance appraisals allow objec-

tive evaluation of employee progress and achievements. By providing construc-
tive feedback, employees can identify areas for improvement and develop action
plans to improve their performance [43]. This helps drive continuous employee
growth and development.

6. Identification of training and development needs: Through a periodic performance

appraisal process, managers can identify employee training and development
needs. By evaluating individual competencies and performance, organizations
can design appropriate training programs to enhance the necessary skills and
knowledge [44]. This contributes to the development of effective and competitive
human resources.

7. Informative decision making: Periodic performance planning and appraisals

provide data and information that are important in the decision-making process
related to employee promotion, compensation, and career development [45].
Objective, evidence-based evaluations help managers make decisions that are
fair and based on real merit.

8. Feedback and reward: Periodic performance appraisals provide an opportu-

nity for managers to provide constructive feedback to employees about their
strengths and areas of development [25]. It helps employees understand expecta-
tions, improve their performance, and feel valued for their contributions.

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8.1 Performance planning process and periodic performance appraisal

The process of performance planning and periodic performance appraisal

are two interrelated stages in performance management. Performance planning
involves setting clear goals and expectations, whereas performance appraisal is
concerned with evaluating the achievement of employee goals and performance.
The following is the process of performance planning and performance appraisal
periodically:
Performance planning:

1. Goal setting: The performance planning process begins with setting specific,
measurable, accomplishable, relevant, and time-limited (SMART) goals for em-
ployees [46]. Clear goals help direct employees and provide guidance in carrying
out their duties and responsibilities.

2. Expectation setting: In addition to goals, performance planning also involves

setting expectations or performance standards expected of employees. These
expectations include competencies, behaviors, and expected results in their
work [18]. Clear expectations help clarify expectations and provide direction for
employees.

3. Action plan creation: After goal and expectation setting, the next step is to
design an action plan to achieve those goals. The action plan includes strategies,
concrete steps, and resources to be used to achieve performance objectives [18].
Action plans help in planning and organizing the necessary tasks.

Periodic performance appraisal:

1. Data collection: Periodic performance appraisals involve collecting data and

information about employee performance. This data can come from a vari-
ety of sources, including direct observation, performance records, feedback
from colleagues and superiors, as well as measurable achievement against set
goals [47].

2. Performance evaluation: After data collection, the next step is employee perfor-
mance evaluation. This evaluation involves comparing the actual performance of
employees with predetermined goals, agreed expectations, and relevant perfor-
mance standards [18]. Performance evaluations help identify strengths, weak-
nesses, and areas of development for employees.

3. Feedback and coaching: After a performance evaluation, it is important to pro-

vide constructive feedback to employees. This feedback should focus on achiev-
ing goals, behavior, and developing the employee’s potential [24]. In addition,
it requires coaching or developing employees to help them achieve goals and
improve their performance.

Periodic performance planning and appraisal is an integral part of effective

performance management. This process involves setting clear goals, monitoring prog-
ress, providing feedback, and conducting regular employee performance evaluations.

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Human Resource Management – An Update

1. Specific goal setting: The performance planning process begins with setting
specific, measurable goals. Goals should be clear, measurable, and relevant to the
organization’s vision and strategy [22]. Clear goals help employees focus on the
right priorities and increase motivation to achieve desired results.

2. Monitoring and measuring progress: During the planning period, progress

against goals should be continuously monitored and measured periodically.
Managers and employees must monitor the achievement of targets and evaluate
whether there are any changes or adjustments that need to be made [18]. Regular
monitoring allows for quick corrective action if needed.

3. Constructive feedback: The periodic performance appraisal process involves

providing feedback to employees about their performance. Feedback should be
provided in a constructive manner, focused on achieving goals, and providing
recommendations for improvement [25]. Effective feedback helps employees
understand their strengths and areas for improvement.

4. Objective performance evaluation: Performance evaluation is an important part

of the performance appraisal process. Evaluation should be conducted objec-
tively based on pre-established criteria, such as competence, deliverables, and
contributions to organizational goals [47]. Fair and accurate evaluations assist in
decision-making regarding employee development and awarding.

8.2 Use valid and reliable assessment instruments and tools

In performance management, the use of valid and reliable appraisal instruments

and tools is essential to ensure accurate and objective performance measurement. The
right instruments and tools can provide quality data for decision-making related to
employee development and awarding.

1. Validity of assessment instruments: Validity refers to the extent to which assess-

ment instruments measure what they are supposed to measure. A valid assess-
ment instrument can accurately assess the targeted characteristics or competen-
cies. Validity can be obtained through content analysis, construct validity, and
criterion validity [45]. The use of valid assessment instruments helps ensure the
data obtained reflects the actual quality of performance.

2. Reliability of assessment instruments: Reliability refers to the consistency of results

obtained from assessment instruments. Reliable assessment instruments produce
stable and reliable data. Reliability can be tested using methods such as retest and
internal consistency [18]. The use of reliable assessment instruments ensures that
performance measurements are reliable and not influenced by random factors.

3. Instrument adaptation needs: Every organization has a unique context and

needs. Therefore, it is important to ensure assessment instruments and tools
can be properly adapted to the work environment and organizational goals.
Customizable instruments allow organizations to measure relevant and
important aspects in their own context [48].

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4. Available resources: In selecting and using assessment instruments, it is necessary

to consider the availability of resources, such as the necessary expertise, time,
and technology. Selecting appropriate assessment instruments with available
resources can ensure efficient and effective implementation [49].

5. Ensuring objectivity and fairness: The use of valid and reliable appraisal instru-
ments helps ensure that performance evaluations are conducted objectively and
fairly. Valid and reliable instruments reduce subjectivity bias and increase fair-
ness in employee appraisals [13]. By using objective instruments, development
decisions and performance-related decision-making can be made based on facts
and accurate data.

9. Coaching and performance development

Performance coaching and development is an important component in perfor-

mance management that aims to improve the ability and competence of employees
in achieving organizational goals. By conducting effective coaching and perfor-
mance development, organizations can maximize employee potential and increase
productivity.
The first step in coaching and performance development is to identify employee
development needs. This can be done through performance evaluations, competency
analysis, and talks between superiors and subordinates. By identifying specific
development needs, organizations can design appropriate and relevant coaching
programs [50]. It is important for organizations to provide adequate support and
resources in coaching and performance development. This includes the provision of
training, mentoring, access to learning resources, and career development opportuni-
ties. Adequate support and resources will give employees the opportunity to develop
their skills and knowledge [51].
In coaching and performance development, it is important to use effective learn-
ing methods. Effective learning methods can include classical training, practical work
training, mentoring, giving special projects, or the use of learning technology such
as e-learning. Choosing the right learning method will help employees develop skills
better [52].
Evaluation and feedback on coaching and performance development are essential
to measure program effectiveness. The organization needs to evaluate the results
of the coaching that has been done and provide feedback to employees. This helps
employees understand their strengths and areas of development and provides oppor-
tunities for improvement [34].

9.1 Identify employee coaching and development needs based on performance

appraisal results

Identifying employee coaching and development needs based on performance

appraisal results is an important step in effective performance management.
By understanding the areas that need improvement and the necessary development,
organizations can design appropriate coaching programs to improve the quality of
employee performance.

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Human Resource Management – An Update

The results of performance appraisals provide insight into the strengths and
weaknesses of employees in carrying out their duties and responsibilities. By
analyzing the appraisal results, organizations can identify areas where employees
need to improve their performance [13]. This allows for coaching planning aimed
at improving areas that need improvement. Every employee has different develop-
ment needs based on the results of their performance appraisals. Some employees
may require development in technical skills, while others may require development
in leadership skills or teamwork [53]. By identifying individual needs, organiza-
tions can put together customized coaching programs to help employees reach their
potential.
Identifying coaching and development needs based on performance appraisals
also provides growth opportunities for employees. By offering relevant coaching
programs, organizations provide opportunities for employees to enhance their skills
and knowledge, which in turn can improve career prospects and job satisfaction [52].
In addition, identifying coaching and development needs based on performance
appraisals helps organizations allocate resources more efficiently. By focusing coach-
ing efforts on areas that need the most attention, organizations can avoid wasting
resources on development that is irrelevant or less prioritized [54]. This helps in
planning a more effective coaching budget.

9.2 Implement an effective performance development program

Implementing an effective performance development program is an impor-

tant step in ensuring the growth and improvement of the quality of employee
performance.
Before designing a performance development program, it is important to identify
employee development needs based on the results of performance appraisals and
organizational goals [55]. By understanding development needs, programs can focus
on the most relevant aspects and have a significant impact on employees and the
organization. It involves determining the areas of skill, knowledge, or competence
that need to be improved to achieve the desired results.
After identifying the development needs, the next step is to plan a structured
and targeted development program. The program should include clear objectives,
effective learning methods and strategies, and an assessment of employee progress
during program implementation [56]. According Snell et al. [57] the program should
include training, coaching, work experience, and career development that aligns with
the development goals that have been set, not least a program that is challenging and
provides opportunities to improve skills and knowledge that will motivate employees
and encourage their growth.
The involvement of leaders and managers in performance development pro-
grams is essential. They must provide support, provide feedback, and provide
clear direction to employees in following the development program [58]. Leaders
and managers also play a role in providing the resources necessary to make the
program a success including formal training, mentoring, performance monitoring,
special projects, and participation in cross-departmental projects [53]. By utiliz-
ing a variety of methods, employees can develop a wide range of skills and gain a
comprehensive understanding of their work. According to [52]. Effective perfor-
mance development programs use a variety of learning methods, such as coaching,
mentoring, coaching, or project assignments. The diverse approach helps employees

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learn in a way that suits their learning style, thus maximizing the development of
their potential. Effective performance development programs encourage continu-
ous learning in the workplace. It involves providing support for self-development,
access to learning resources, and facilitating knowledge exchange between employ-
ees [55]. By encouraging continuous learning, organizations can create a culture
of learning that allows employees to continue to grow and adapt to changing work
environments.
To ensure the effectiveness of performance development programs, it is important
to conduct regular evaluations and measure their impact on employee performance
and the organization as a whole [57]. Through the assessment, it can be seen to
what extent the program achieves development goals and its impact on employee
performance [56]. This evaluation can be done through performance measurement,
feedback from employees, and assessment of program effectiveness. By tracking and
evaluating results, development programs can be adjusted and improved as needed to
improve future programs.

10. Recognition and reward in performance management

Recognition is an effective way to appreciate significant employee achievements

and contributions [59]. According Luthans et al. [60] consistent and fair recognition
and reward can increase employee retention and reduce turnover rates, employees
who feel valued and rewarded are more likely to be more motivated to stay in the
organization and make long-term contributions.
By providing recognition, employees feel valued and motivated to continue
to perform well. Recognition can take the form of praise, public appreciation, or
formal awards such as certificates or monthly/yearly employee awards. With the
right rewad and recognition can increase employee satisfaction and attachment to
the organization [60]. Employees who feel recognized and rewarded fairly tend
to be more loyal, dedicated, and contribute positively to organizational goals.
Therefore, recognition and reward have a positive impact on employee motivation
and engagement. When employees feel recognized and valued, they tend to be
more motivated to continuously improve their performance and contribute more
actively to achieving organizational goals [60]. It also helps strengthen the bond
between employees and the organization, thereby increasing employee retention
and loyalty rates.
Rewards given in the form of performance-based incentives or bonuses can be
a motivation for employees to achieve targets and improve their performance [61].
The rewards associated with achieving set goals can provide an additional boost
to achievement and deliver better results. Through appropriate recognition and
reward, performance management can encourage desired behaviors and align with
organizational values [59]. Rewards associated with achieving performance targets
or developing certain competencies can shape a positive work culture and lead to
organizational success. Consistent and fair recognition and reward can increase
employee retention and reduce turnover rates [60]. Employees who feel valued and
rewarded tend to be more motivated to stay in the organization and make long-term
contributions.
In practice, consistent recognition and reward can help build a culture of rewards
within the organization. When recognition becomes part of the work culture,

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Human Resource Management – An Update

employees feel more motivated to give their best performance and develop high
quality work [62]. A culture of appreciation also creates a positive work environ-
ment and strengthens collaboration between employees. It can be used as a means to
encourage employee learning and development. For example, rewarding training or
career development opportunities can motivate employees to continuously improve
their skills and knowledge [8]. Thus, organizations can build competitive advantage
through continuous employee development.
It is important to allocate adequate resources for recognition and reward in
performance management. Organizations need to have clear policies and best
practices regarding recognition and rewards, including transparent criteria, fair
procedures, and consistency in awarding [60]. Thus, recognition and rewards
can be implemented effectively and have a positive impact on employees and the
organization.

10.1 The importance of recognition and reward in increasing employee

motivation and performance

Recognition and reward are important factors in performance management

that can contribute significantly to employee motivation and performance.
According to Deci and Ryan [63]. Proper recognition and reward can be a source
of motivation for employees. According to motivation theory, employees tend
to perform better when they feel valued and get recognition for their efforts and
contributions.
Recognition and reward associated with achieving performance or desired
behavior can encourage employees to exhibit positive, high-performing behavior
[34]. Rewards given in return for good performance signal employees about expected
expectations and provide motivation to achieve.
Recognition and rewards given appropriately can increase employee productivity
and quality of work. Employees who feel valued tend to work with more enthusiasm
and strive for higher standards [64]. This has a positive impact on the achievement of
organizational goals.
Recognition and rewards given appropriately can increase employee job satisfac-
tion. Employees who feel recognized and rewarded fairly are satisfied with their work
and work environment [32]. This can create a positive work climate and strengthen
employee commitment to the organization.
Human needs theory suggests that recognition and reward can satisfy some of
the basic psychological needs of employees [65]. Recognition can satisfy the need
for reward and a sense of worth, while reward can satisfy the need for economic
recognition and financial security. By meeting these needs, employees become more
motivated and perform better.
Consistent and fair recognition and rewards can create a positive work environ-
ment [66]. When employees feel valued and cared for, they tend to be happier and
satisfied in their jobs. A positive work environment affects the working atmosphere,
teamwork, and ability of employees to focus and perform well.
Recognition and rewards given fairly can increase employee commitment to the
organization [67]. Employees who feel valued and given recognition tend to be more
loyal to the organization, highly motivated to achieve organizational goals, and
actively contribute to the company’s success.

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Proper recognition and reward can increase employee productivity and quality of
work [68]. Employees who feel valued tend to work more efficiently and are dedi-
cated to achieving better results. Increased productivity and quality of work also have
a positive impact on the achievement of organizational goals.

10.2 Effective recognition and reward strategies and practices

Effective recognition and reward are an important part of performance man-

agement that can improve employee motivation and performance. According to
Armstrong and Murlis [69] it is important for organizations to clarify the goals to
be achieved through recognition and reward. Goals should be specific and related
to desired performance. In addition, it is also important to clearly communicate these
goals to employees so that they understand what is expected of them. According to
O’Neil et al. [70] recognition and rewards should be given clearly and measurably so
that employees understand what is valued and what is expected of them with specific
goals and clear assessment criteria that will help in determining whether employees
are eligible to receive recognition and rewards.
Every employee has different preferences and motivations. Therefore, it is
important to consider the diversity of rewards given. Rewards can be verbal recogni-
tion, promotions, financial bonuses, career development opportunities, or other
non-financial incentives. Tailoring rewards to individual preferences and needs can
increase their effectiveness [71]. According to Reeve [72] every employee has differ-
ent needs and preferences, therefore, it is important to provide diverse recognition
and reward options with personalized recognition and rewards according to the
individual preferences of employees will be more effective in improving their motiva-
tion and performance.
Recognition and rewards must be done consistently and fairly. Consistency
means that recognition and reward are not selective but are based on consistent
achievement from employees. Fairness means that the reward determination and
assessment process must be transparent, objective, and impartial [73]. Cropanzano
et al. [74] said the principle of fairness is very important in giving recognition
and rewards, so the process of determining recognition and rewards must be
transparent, objective, and based on fair criteria. Employees need to feel that they
are being treated fairly and that recognition and rewards are based on tangible
contributions.
Providing real-time feedback is an effective practice in giving recognition and
rewards. When employees perform an outstanding achievement or achieve a set
target, providing immediate recognition and reward can reinforce the link between
performance and recognition. It also increases employee awareness of their contribu-
tion [73]. This is where the provision of recognition and rewards given in real-time, as
soon as employees achieve achievements or contribute, is more effective in increasing
motivation and maintaining good performance, not only given at certain moments,
but also continuously in the longer term [75].
Personalized Recognition: Every individual has different recognition pref-
erences. It is important to personalize recognition and rewards according to
employee needs and preferences. For example, some employees may value public
recognition more, while others prefer personal recognition or written reciprocity.
Understanding individual preferences helps improve recognition effectiveness [71].

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Human Resource Management – An Update

Open communication about recognition and reward is critical to ensuring employees

understand and value the recognition they receive [68]. Public appreciation, such as
announcements or awards in front of a team or organization, can increase an employ-
ee’s sense of pride and self-esteem.

11. Evaluation and improvement of performance management process

11.1 Evaluate the effectiveness of the performance management process

Evaluating the effectiveness of performance management processes is an

important step in ensuring that the system is functioning properly and supports the
achievement of organizational goals. Evaluation of the performance management
process can be helpful in measuring the extent to which employees are achieving
set goals and whether they are meeting expected performance standards [76]. This
evaluation can be done through individual performance measurements, such as the
use of key performance indicators (KPIs), as well as through feedback from superiors,
co-workers, and employees themselves. Such indicators may include the level of goal
achievement, increased productivity, employee satisfaction, and competency attain-
ment [77] this makes it possible to assess the extent to which the process supports the
achievement of organizational goals and whether adjustments or improvements need
to be made. Therefore, evaluation of the performance management process helps
organizations to ensure that the system is in accordance with organizational goals and
strategies [78].
Assessing the Relevance and Conformity of Objectives requires a performance
management process also involves assessing the relevance and suitability of the
objectives that have been set [79]. Goals that are clear and relevant to the orga-
nization’s strategy will provide the right direction for employees in achieving the
expected performance. That’s where valid and reliable data collection is needed.
Data can be obtained through various methods such as surveys, interviews, obser-
vations, and document analysis [6]. It is important to use appropriate data col-
lection instruments and techniques in order to obtain accurate information about
performance, whether employees and teams have achieved predetermined targets
and established performance standards [6]. This helps measure the extent to which
employees and teams have succeeded in meeting the expectations and expectations
that have been set.
Performance management also involves assessing the quality of feedback provided
to employees [25]. Effective and constructive feedback can help employees to improve
their performance. This evaluation involves assessing the clarity, relevance, and
consistency of feedback provided by superiors and colleagues. Analysis can involve
comparisons between actual results and predefined targets, identification of perfor-
mance trends, and comparisons between individuals or teams within the organization
[80]. With in-depth analysis, strengths, weaknesses, and areas of improvement can
be identified in the performance management process and help in identifying weak-
nesses or obstacles that may exist in the system [13]. By knowing these weaknesses,
organizations can take the necessary corrective steps to improve the effectiveness and
efficiency of the performance management process.
Performance management should also include an assessment of its impact on
employee motivation and development [81]. An effective performance management
process will encourage employee motivation and development, as well as increase
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their involvement in work. This evaluation can be done through employee satisfac-
tion surveys, interviews, or group discussions. The results of the evaluation need
to be conveyed to relevant stakeholders, including management and employees.
Constructive feedback can provide insight into the successes and failures of perfor-
mance management programs [77]. Based on the results of the evaluation, improve-
ments and improvements can be made in the performance management process to
increase its effectiveness. At least performance management provides important
information in decision making related to employee development, promotion,
reward, or elimination of employees [82]. By having accurate data and information,
organizations can make informed and objective decisions to improve individual and
overall organizational performance.
Performance management evaluation also aims to identify areas that need
improvement or adjustment [75]. The results of the evaluation can be used as a
basis for making improvements in the performance management system, includ-
ing in terms of formulating objectives, delivering feedback, or using assessment
instruments. This process is not a one-way activity but needs to be done on an
ongoing basis. Periodic evaluation allows monitoring of performance changes,
identification of long-term trends, and adjustment of performance management
programs in accordance with organizational changes and the business environ-
ment [18]. As well as helping in measuring the effectiveness of the system as a
whole [1].

11.2 Identify continuous improvement and development in performance

management

Identifying continuous improvement and development is a crucial aspect of

performance management that helps organizations to continuously improve per-
formance and achieve desired goals. By identifying continuous improvements in
performance management, organizations can overcome weaknesses and obstacles
that may exist in current systems [6]. This involves collecting and analyzing data on
factors that affect employee performance, such as lack of skills, inadequate training,
or ineffective policies. In addition, by identifying improvements in the performance
management process, organizations can improve overall efficiency and productivity
[18]. By removing barriers and improving existing processes, employees can work
more efficiently, produce better performance, and achieve organizational goals more
effectively.
The ever-changing business environment requires constant adaptation and inno-
vation, hence the identification of continuous improvement also allows organizations
to improve the processes and performance evaluation tools used [78]. In this process,
the organization can evaluate whether the evaluation tools used are still relevant,
objective, and meet the needs of the organization. If needed, changes and enhance-
ments can be made to improve the validity and reliability of the performance evalua-
tion process. This includes adjusting employee skill needs, developing new strategies,
and changes in work duties and responsibilities.
Identifying continuous development opportunities helps organizations to encour-
age continuous employee learning and development [78]. Continuous improvement
identification also allows organizations to identify skills and competencies that
need to be further developed within teams or individuals [13]. Through the use of
performance data and feedback, organizations can identify specific areas of develop-
ment and design appropriate training and development programs. By providing new
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Human Resource Management – An Update

training, education, and experience to employees, they can improve their skills and
knowledge, which in turn will improve their performance in the future.
Innovation and Process Improvement: Identifying continuous improvement also
provides an opportunity for organizations to innovate and improve performance
management processes [1]. As well as increasing employee engagement and satisfac-
tion [82]. When employees feel that their organization cares about improving and
developing their performance, they will be more motivated, engaged, and satisfied
with their work, while organizations can consider using technology, new methods,
or more effective approaches to manage employee performance and achieve better
results.
Identifying continuous improvement also means adopting an attitude that is open
to changes in performance management [7]. Organizatiomakingeed to be willing
to adapt to changing business environments and employee needs, as well as make
continuous improvements to maintain competitive and relevant performance. By con-
tinually identifying improvements and developments in performance management,
organizations can strengthen their competitive advantage [1]. Improving employee
performance and work processes on an ongoing basis helps organizations to remain
relevant and competitive in an ever-evolving market.

12. Conclusions

Performance management is the process of planning, supervising, and improving

the performance of individuals, teams, and the organization as a whole. The main
objectives are to increase productivity, set clear performance goals, measure perfor-
mance, provide feedback, develop performance, and support effective decision making.
Performance management plays an important role in achieving organizational
goals. With effective performance management, organizations can identify barriers
to achieving optimal performance, measure goal achievement, and provide construc-
tive feedback to individuals and teams. Employee training and development is also
driven by performance management, as well as supporting decision-making related to
promotions, rewards, and career development.
The above discussion reviews various aspects of performance management,
including comparisons between traditional approaches and new approaches. The tra-
ditional approach focuses on periodic evaluation and control, while the new approach
places more emphasis on continuous and responsive development, employee engage-
ment, use of technology, and performance management. A variety of approaches
are also discussed, including competency-based, purpose-based, and continuous
feedback.
Employee involvement is very important in performance management because
it brings various benefits. When employees are actively engaged, they feel a sense of
responsibility towards achieving organizational goals and are motivated to improve
performance. Some of the benefits of employee engagement include increased
satisfaction, motivation, individual and team performance, skills development, com-
munication, collaboration, and creating a motivating culture.
Recognition and reward also play an important role in performance management
because it can increase employee motivation and performance. Consistent and fair
recognition contributes to better employee retention and reduced turnover rates.
By feeling valued and rewarded, employees tend to be more motivated to stay in the
organization and make long-term contributions.
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Acknowledgements

Thank you to the library of the University of Muhammadiyah Jember for provid-
ing space to work on this project and do not forget to also say to Mr. Juhanda who has
been willing to be a consulting partner during the work on this project.

Conflict of interest

The authors declare no conflict of interest.

Author details

Faozen Faozen* and Shah Riza Octavy Sandy

University of Muhammadiyah Jember, Jember City, East Java, Indonesia

*Address all correspondence to: [email protected]

© 2023 The Author(s). Licensee IntechOpen. This chapter is distributed under the terms of
the Creative Commons Attribution License (http://creativecommons.org/licenses/by/3.0),
which permits unrestricted use, distribution, and reproduction in any medium, provided
the original work is properly cited.
25
Human Resource Management – An Update

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