Worker Performance Management is a process for establishing a common work force, understanding what will be attained at an organization level. It’s about aligning the organizational goals with the workers’ contracted measures, abilities, competence requirements, development strategies and the delivery. The emphasis is on development in order to realize the complete business strategy and to produce a high performance work force, learning and advancement.

Performance Management started around 60 years ago as a way to obtain reasonable earnings and was used to establish workers wages’ depending on their job performance. Performance Management was used by organizations to guide workers’performance in order to attain the desired outcomes. In practice, this serves appropriately for certain workers who were just motivated by monetary benefits. But where workers were motivated by learning and development of their abilities, it failed. The gap between the development of knowledge/abilities and reason became a massive problem in using Performance Management. This became clear in the late 1980s; the realization that a more complete way of managing and rewarding performance was needed. This strategy of managing performance was designed in the United Kingdom and the United States much earlier than it was in Australia.

In recent decades, the procedure for managing workers is becoming more formalized and specialized than before. Some of the existing performance appraisal approaches were focused more into the theory which is designed to be an all-inclusive and more extensive procedure for performance management. Some of the developments that have shaped Performance Management are management by objectives, expertise management and constant observation/review of work-related activities.

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