This paper aims to link the theory of performance management and performance-related pay with practice, by relating the findings from literature with the process used by the Victorian Department of Education to assess the performance of school principals. Literature indicates a number of factors deemed necessary to ensure that performance management is successful in achieving its aims and is acceptable to participants. These include the effect of the performance management process on motivation, individual and organisational improvement, integrated planning and changes to the culture of the workplace. Also significant are the ways in which performance management is linked to the strategies and objectives of the larger organisation, its culture and values and the extent to which it leads to a climate focused on quality, accountability and improved performance. The major focus has been to develop an enhanced understanding of the conditions that lead to effective performance management of middle managers and to clarify the conditions under which performance management is most likely to be accepted by those involved. To achieve this, the study has focused on principals' perceptions of the current Department of Education Performance Management Program and analysed these perceptions in light of the recommendations from literature and the experiences of other organisations. The paper concludes with a number of recommendations or issues for consideration in the development of future processes.
Available at: http://works.bepress.com/lawrence_ingvarson1/56/