Performance Management

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Course TypeCourse CodeNo. Of Credits
Foundation ElectiveSBP2MB7242

Semester and Year Offered: 3rd semester, 2nd year

Course Coordinator and Team:

Email of course coordinator:


Course Objectives/Description:

The objective of this course is to discuss the theories and the importance of developing practices which will enhance individual and organisational performance. The course deals with concepts, tools and processes to develop performance management systems in organisations. It discusses the steps and process of designing and implementing goal setting processes, and how to review and monitor them.

Course Outcomes:

  1. On successful completion of this course students will be able to:
  2. Identify necessary characteristics of performance management system.
  3. Design an appropriate performance management process in organization.
  4. Identify and communicate appropriately with employees to give performance feedback;
  5. Understand various performance management programs and appreciate attributes of effective performance management system

Brief description of modules/ Main modules:

Unit 1: Performance Management (PM): Concepts, Context and Use

Performance-definition; Performance appraisal vs. performance management; Goals and characteristics of PM

Unit 2: Process of PM

Performance planning and goal setting

Unit 3: Measuring Performance

Measuring results and behaviours; Development of KRAs and KPIs; Different appraisal methods

Unit 4: Rating Methods and Determining Overall Rating

Rating errors and how to prevent errors; Design of appraisal forms

Unit 5: Implementing Performance Management Systems (PMS)

Ongoing monitoring and evaluation; Feedback communication and counselling

Unit 6: Designing PMS

Appraisal feedback and review

Unit 7:Team Performance

Managing Team Performance: Systems and issues

Unit 8: Balanced Scorecard

Development of balance score card; Relationship score card

Assessment Details with weights:



Mid term


Project Report and  Presentation




End-Term Examination




Reading List:

  • Armstrong Michael, (2007). Performance Management, Key Strategies and Practical Guidelines, 3rd Edition, South Asian Edition, Kogan Page.
  • Cardy, R. L. and Leonard, B. (2012), Performance Management, 2nd Edition, PHI Learning Pvt. Ltd
  • Goel, D. (2012), Performance Appraisal and Compensation Management, 2nd Edition, PHI Learning Pvt. Ltd.
  • Rao, C. A. (2012), Performance Management, Biztantra.
  • Rao, T. V., Appraising and Developing Managerial Performance, Excel Books.


  • Additional Cases and Readings / Articles are provided to the participants in form of a course manual as the commencement of the session.