Abstract views: 1 / PDF downloads: 0
Keywords: Digital transformation; Employee development; HR analytics; Performance management
Performance management has evolved significantly from the traditional performance appraisal system to a continuous and strategic process that supports employee development and organisational effectiveness. This paper critically reviews the evolution of performance management by examining the limitations of traditional appraisal systems and the emergence of contemporary strategic performance management approaches. The study adopts a narrative review methodology by synthesising scholarly literature on performance management, with emphasis on classical and contemporary studies. The review revealed that while traditional performance appraisal focused primarily on evaluating past performance for administrative purposes, modern performance management promotes continuous feedback, coaching, employee participation, competency development, and the alignment of individual performance with organisational objectives. However, the review also identifies implementation challenges associated with continuous performance management, including feedback fatigue, managerial bias, digital surveillance concerns, inconsistent application, and technological limitations, particularly in resource-constrained organisations. Furthermore, recent developments in artificial intelligence, HR analytics, digital performance management platforms, and remote work have fundamentally reshaped performance management practices and created new opportunities and challenges for organisations. The paper concludes that effective performance management requires organisations to balance technological innovation with fairness, transparency, employee development, and organisational strategy. It recommends that organisations adopt evidence-based, context-specific, and technology-enabled performance management systems supported by continuous managerial capability development, employee engagement, and clear organisational policies.