Maha Abdullatif Abutalib 1 A Critical Analysis of the Performance Management case study: Novartis Introduction Novartis is a healthcare provider that is engaged in the provision of innovative healthcare services that address the ever-changing needs of patients and the community. As part of its corporate social responsibility, Novartis emphasizes on efficiency in performance and utilization of its human resource. In addition, the company is concerned about the role of its employees in the provision of quality services and achieving the company’s performance target. Although, Novartis has promoted an extensive performance management process, their efforts have not attained the desired levels of expectation. Performance management is an extremely important concept in business. The performance management system has revolutionized how business and management of organizations is happening in today’s society. The system is a goal oriented program that ensures objectives of an organization are met in an effective manner (Aguinis 2005). With special focus on a department, a firm, or certain employees, performance management provides positive results. Novartis Vaccine and Diagnostics Company implemented the performance management system in 2006 in order to improve company operations (Novartis Vaccines and Diagnostics 2009). The performance management system was implemented in the vaccine and diagnostic segments. With the company operating across 140 countries globally, the performance management system has been put in place to check employee development, evaluate the performance of employees, and improve communication with the company for effectively achieving the organization objectives (Novartis Vaccines and Diagnostics 2009) it has been deemed effective in managing employees and line managers in the company. Nonetheless, there are some gaps which should be addressed for further improvement of the system in order to meet company objectives effectively. The Performance Management Process Can Be Considered ‘Strategic’ Novartis PM Process is strategic since it links other HR polices such reward, talent development and training with its performance management policies. This is a good strategy since it enables the company to achieve its management objectives through direct approach. The pay for performance system is strategic since it enables the company to motivate its employees by rewarding them for exceptional performance. Moreover, the company can evaluate values of its employees in terms of the value that they contribute to the company. Rewarding employees for excellent performance also enable them benefits from their initiatives and handwork (Randle, 2007). To implement the performance program Novartis has implemented a training program to equip its staff with the required skills. Although the PM process is rewarding in the short term, it cannot be relied onto in the long term. This is because; employee’s performance is limited to several factors including their ability and performance capacity.