How to... manage performance

With many employers fighting for survival there is increased pressure to get the best out of staff. This commonly manifests itself in a performance management system. However, there are real problems with this process.

Surveys in both the US and Britain reveal that few are satisfied with their systems. Despite this, performance management cum appraisal is a well-established practice that drives decisions about pay, promotion, terminations, transfers and training needs. So what are its defects and what can be done about them?