There are two important prerequisites that are required before a performance management system is implemented. First, knowledge of the organization’s mission and strategic goals. Second, knowledge of the job in question. There is a constant back and forth between mission and vision and strategic planning.

Strategic planning allows an organization to clearly define its purpose and reasons for existing, where it wants to be in the future, the goals it wants to achieve, and the strategies it will use to attain these goals. Once the goals for the entire organization have been established, similar goals cascade downward, with units setting objectives and employees goals’ supporting the organization’s overall mission and objectives. If there is a lack of clarity regarding where the organization wants to go, there will be a lack of clarity regarding what each employee needs to do and achieve to help the organization get there.

The second important prerequisite before a performance management system is implemented is to understand the job in question. Given changes in the nature of work and organizations, jobs are anything but static. Because people are asked to work on new projects, participate in different teams, and use new apps and technologies on an ongoing basis, jobs also change on an ongoing basis. Understanding employees’ tasks and
responsibilities is done through work analysis.

Work analysis is a process of determining the key components of a particular job, to understand what an employee is supposed to do on the job and how to evaluate. As a result of a work analysis, we understand the tasks to be carried out and the knowledge, skills, and abilities (KSAs) required of a particular job. The tasks and KSAs needed for the various jobs are typically presented in the form of a job description, which summarizes the job duties, required KSAs, and working conditions for a particular position.