Implications

The point of performance management is to try to improve performance – whatever is meant by performance for that organisation. Therefore if asked to comment on the implications for performance management you are being asked to comment on what will happen performance management and performance.

So, for example, if a remuneration scheme gave bonuses for hitting sale targets the implications is that this would push people towards achieving the targets. It might also make them stop trying after the target is achieved.

If a transfer price is set incorrectly, then this could cause a sub-unit to make decisions that do not maximise group profits and this would reduce performance ie performance management is not working successfully here.