The following characteristics are likely to allow a performance management system to be successful. Clearly, practical constraints may not allow for the implementation of all these features. The reality is that performance management systems are seldom implemented in an ideal way. There may not be sufficient funds to deliver training to all people involved. Supervisors may have biases in how they provide performance ratings. Or, people may be just too busy to pay attention.

There may be organizational or even country-level constraints that prevent the implementation of a good performance management system. Regardless of the societal, institutional, and practical constraints, we should strive to create a system that will live up to its promise and deliver the benefits of good performance management. The system should be congruent with the unit and organization’s strategy. In other words, individual goals must be aligned with unit and organizational goals.

The system should be congruent with the organization’s culture as well as the broader cultural context of the region or country. The system should be thorough regarding four dimensions. First, all employees should be evaluated (including managers). Second, all major job responsibilities should be evaluated. Third, the evaluation should include performance spanning the entire review period. Finally, feedback should be given on positive performance aspects as well as those that are in need of improvement.