SECTION FOUR

PERFORMANCE MANAGEMENT

PERFORMANCE MANAGEMENT: AN INTRODUCTION BY EDWARD E. LAWLER III

The performance management systems in most organizations are controversial, ineffective, and constantly under construction. They are so problematic that critics argue many organizations would be better off if they simply didn't have a performance management system, particularly one in which performance appraisals are tied to pay actions. But—and it is an important but—if individuals are not appraised, counseled, coached, and rewarded for performance, how can an organization produce the organized, coordinated, and motivated behavior that it takes to perform well? The answer most likely is that it can't.

Some performance management system clearly ...

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