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Purpose: The most prominent change that is seen now is that higher education institutions are under pressure prove their usefulness, objectives, and methods of achieving these objectives. They are also asked for details related to the allocation of their resources and priorities and are also asked to fulfill their social responsibilities. Everyone, from prospective students to the general public, now wants data and proof in favor of the effectiveness and necessity of these institutions. Because of this, higher education institutions are now more involved in the race of securing funding and win over potential customers. In this race, they are now working on the quality of academic staff and their training, recruitment, reward system, utilization and motivation. These factors are considered some of the most important ones in improving the overall effectiveness of higher education institutions. Because of these new requirements, there is now more demand than ever before to implement performance management (PM) systems. The study is focused on using the qualitative research approach to analyze and gather the data from the research conducted previously on the role of performance management in higher education institutions.
Methodology: The qualitative approach is merely an extension of the earlier researches conducted on the topic and help build a stronger point of view by using the previous analyses published already. This type of study helps in examining the role of an educational system in its natural context and without hurting the ethical boundaries present the most viable options. The study made the opinions of practitioners and utilized the judgments of those who are already working in the field along with those who are inclined towards policy making. The theoreticians who have been working in the field and conducting research related to the topic present the most immediate view.
Findings: The concept of PM is present in the segment of Higher Education Institutions. However, it needs to be improved upon and tailored to the needs and vision of universities. Higher Education Institutions need to see the difference between Performance Management and Performance Appraisal. However, common texts often use both these terms as being the same. It is to be seen that Performance Appraisal is a part of performance management systems.
Implications: Universities need to implement PM procedures to improve the performance of individuals and align individual goals and objectives with the university strategic goals. This will improve the overall performance of the university to achieve its intended end. Performance Appraisal in universities needs to take into account the performance of everyone in the university. This includes performances of academics along with administration. However, the focus should be equally on both academics and administration.
Keywords: Higher education institutions, performance management, performance appraisal and Higher education systems.
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