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i
PERFORMANCE
MANAGEMENT
iii
PERFORMANCE
MANAGEMENT
KEY STRATEGIES AND
PRACTICAL GUIDELINES
3RD EDITION
Michael Armstrong
London and Philadelphia
iv
Publisher’s note
Every possible effort has been made to ensure that the information contained in this book
is accurate at the time of going to press, and the publishers and author cannot accept
responsibility for any errors or omissions, however caused. No responsibility for loss or
damage occasioned to any person acting, or refraining from action, as a result of the
material in this publication can be accepted by the editor, the publisher or the author.
First published in Great Britain and the United States in 1994 by Kogan Page Limited
Second edition 2000
Third edition 2006
Apart from any fair dealing for the purposes of research or private study, or criticism or
review, as permitted under the Copyright, Designs and Patents Act 1988, this publi-
cation may only be reproduced, stored or transmitted, in any form or by any means,
with the prior permission in writing of the publishers, or in the case of reprographic
reproduction in accordance with the terms and licences issued by the CLA. Enquiries
concerning reproduction outside these terms should be sent to the publishers at the
undermentioned addresses:
120 Pentonville Road
525 South 4th Street, #241
London N1 9JN
Philadelphia PA 19147
United Kingdom
USA
www.kogan-page.co.uk
© Michael Armstrong, 1994, 2000, 2006
The right of Michael Armstrong to be identified as the author of this work has been
asserted by him in accordance with the Copyright, Designs and Patents Act 1988.
ISBN 0 7494 4537 8
British Library Cataloguing-in-Publication Data
A CIP record for this book is available from the British Library.
Library of Congress Cataloging-in-Publication Data
Armstrong, Michael, 1928–
Performance management : key strategies and practical guidelines / Michael
Armstrong.— 3rd ed.
p. cm.
Includes bibliographical references and index.
ISBN 0-7494-4537-8
1. Employees—Rating of. 2. Performance standards. 3. Performance. I.
Title.
HF5549.5.R3A758 2006
658.3
125—dc22
2005021779
Typeset by Saxon Graphics Ltd, Derby
Printed and bound in the United States by Thomson-Shore, Inc
v
Contents
1 The basis of performance management
1
Performance management defined 1; Aims of
performance management 2; Characteristics of performance
management 3; Developments in performance management 4;
Concerns of performance management 5; Understanding
performance management 6; Guiding principles of performance
management 9; Performance appraisal and performance
management 9; Views on performance management 10;
Performance management and the psychological contract 11;
The process of performance management 12
2 The process of performance management
15
Performance management as a process of management 15;
The performance management cycle 16; The performance
management sequence 16; How performance management
works 16; Performance management activities 18; Performance
management in action 19
3 The practice of performance management
35
IRS, 2003 35; Lawler and McDermott, 2003 36;
Chartered Institute of Personnel and Development, 2003 37;
e-reward, 2005 39
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