Chapter 6: Performance Management in Small and High Growth Companies

The chapter presents a model of performance management that identifies critical steps in the process. Key considerations such as purpose of appraisal, type of criteria and their focus are also summarized. Five key assumptions regarding the small and high growth business environment distinguish it from more typical and less entrepreneurial endeavors. Each of these assumptions carries implications for performance management that demand attention so that the performance management system fits and complements characteristics of the organization in which it operates. The chapter advocates a dual purpose appraisal system that includes developmental and administrative functions, emphasis on behavioral as well as outcome assessment, and a move away from task-based performance criteria toward one that also considers values and roles.