The quality of institutional outcomes depends fundamentally on the work of staff, individually and collectively. Systematic staff appraisal or performance management procedures are generally assumed to comprise an important part of quality management and development in higher education institutions. Past approaches to such appraisal and performance management in higher education have had limited and confused purposes and their contribution to enhanced institutional performance and quality has been minimal. In some cases, the impact has been negative. For performance management to be relevant to the management and development of quality in the 21st century, the spotlight will need to fall on the manner in which organisational units are managed and led, and on the nurturing of teams, rather than the management of individual performance. A shift in emphasis from management to leadership will be required such that performance management becomes a central element in the leadership of change and the provision of transformational leadership.
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