Executive Summary This report covers the fundamentals of performance management, and explains what all the managers and supervisors should know concerning the concept of performance management. In addition, the report creates special emphasis on the importance of employee motivation to performance. In explaining the different concepts, the report uses relevant literature and specific theories, which help the reader to understand the information clearly. Further, the report aims to help the Brook and Kent Company limited in proper implementation of their performance management so as to help improve the quantity and quality of work that the employees produce. Introduction Most organisation do not really comprehend what performance management really means. Therefore, these organisations are usually dismayed at why sometimes the employees may be working hard, and are satisfied with their jobs but still the outcomes from the work of the employees do not reflect the input that the managers and supervisors expect. This usually makes the managers and supervisors to wonder what they may be doing wrong in helping to increase the productivity of the workers. In most of these situations, the managers or supervisors have usually gotten the concept of performance management all wrong, hence this is portrayed in the outcomes of the work done by the employees. Performance management can be explained in simple terms as the activities which an employer or the organisation may take to ensure that the goals which are set are consistently achieved and in an efficient and effective method. The performance management can be used to evaluate the performance of employees, a department within the organisation or the performance of the whole organisation in general. Generally, performance management tries to bring out the best out of the employees’ ability, to enable the organisation achieve good returns. For instance, some organisations use reward based performance management to reward the employees who are perceived to have high performance. Rewarding is a form of recognition for the employees contribution towards the attainment of the main objectives within the business. This report will attempt to evaluate the main concepts of the performance management, which should be applied to organizations to ensure the effectiveness of their performance management systems. The paper will also cover the assumptions which different organisations make in implementing their performance management systems, which ultimately lead to the inefficiency of the performance management systems in ensuring better performance of the employees and therefore better returns for the company. Moreover, the findings of this report will be based on the problems that Brooks & Kent Company limited, a small construction SME, faces. Performance management system For many organisations, the performance management system is first implemented through the creation of an effective business strategy, i.e. strategic planning. The business strategy determines where the business would like to be after a specific period of time. Normally, the period may be six months, one year or even ten years. In addition, the business strategy sho