Performance management, in theory, helps the organization achieve strategic objec-

tives by maintaining and developing employees’ performance. Nevertheless, in practice,

there have been difficulties for firms to measure the performance of their people due to
the non-measurable factors and the sensitivity of this topic. Performance manage-ment
offers the powerful tool in developing measurable and non-measurable perfor-mance of
the employees within the organization.
a small size printing company in Vietnam
The final product is a performance management system which is used in order to track
and improve the performance of individuals in the company.
OBJECTIVES AND TASKS

1. a theoretical framework:
2. familiar with the working environment and get employees’ information
3. Discussing with the director on how the system should be designed
4. Conducting an employee survey to figure out the preferences of employees on the
performance management system
5. Designing the system by using the theories and collected data
6. Evaluating of the project

KEY CONCEPTS
There are many definitions of performance management in the world of human resources.
Armstrong and Baron (2004, in Foot & Hook 2011, 249) defined performance management
as “a process which contributes to the effective 5

management of individuals and teams in order to achieve high levels of organizational

performance”. It is stated by Foot & Hook (2011, 249) that the final goal of performance
management is to motivate the people in the company to achieve the objectives of the
organization.

Performance appraisal is a yearly or a biannual meeting between the manager and the
employee to evaluate the performance of the individual. At this meeting, they will discuss
about the objectives, the performance as well as the plans for future development. (Naisby
2002, 6.)

Personal development reviews are one-to-one reviews which provide the possibility for
managers and employees to manage the performance regularly. The results from these
reviews are used to support the process of the appraisal interview. The frequency of this
review should be at least quarterly, ideally monthly. It also varies depending on the
circumstances. (Naisby 2002, 18.)
Measuring performance is another important concept. According to Armstrong & Baron
(2000, 270), measurement is the core of performance management as it helps generate
feedback and identify the good and bad things within the organization.

PERFORMANCE MANAGEMENT

The process integrates different human resources aspects such as organizational

development, human resource development and reward system. (Armstrong & Baron 2000,
8.)

The aspects needed in developing the process for a company are: vision and mission,
objectives and performance standards, competency analysis, performance appraisal, personal
development review, 360-degree feedback and cultural aspects.

“shared process between managers, individ-uals and teams”. The term should not be
thought of as a tool for monitoring and dis-ciplining employees. It should be viewed as a
tool for the organization to achieve the

3.2 Vision, mission and value statement

3.3 Competency analysis
3.4 Performance appraisals
3.4.1 Type of appraisal scheme
3.4.2 Objectives, standards and targets
3.4.3 The appraisal interview/meeting
3.5 Personal development review
3.6 360-degree feedback
3.7 Cultural aspects
3.7.1 Power distance
3.7.2 Uncertainty avoidance
3.7.3 Individualism
3.7.4 Masculinity
3.7.5 Possible organizational interventions in cultural problems