Performance Management Systems: Bridging Task and Result Gaps Through Strategic Alignment
Performance Management Systems (PMS) are critical mechanisms
for enhancing individual and organizational performance. Despite their
widespread adoption, many PMS fail to address two fundamental performance gaps:
the task performance gap (how work is done) and the result performance gap
(what is achieved). This paper reviews the evolution of PMS, drawing on
historical models and recent innovations, and integrates scientific,
behavioral, and cognitive theories to propose a strategic alignment framework. We analyze the role of
industry-specific factors, organizational structure, culture, and technology in
shaping effective PMS. Practical recommendations and debunked myths help
practitioners design tailored systems that close both performance gaps.
Keywords: Performance management, strategic alignment, OKRs, task-performance gap, result-performance gap, organizational culture, compensation strategy.
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