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Examines early steps in implementing the NHS national individual performance review scheme. Participating trusts have taken widely different approaches. Provides examples.

Examines managing performance as an integrated, dynamic process, involving strategic decisions, people value, management of change and communication. Concludes that it is better to be a learning company than an excellent company, as this leads to commitment to employee development, which in turn leads to managing human resources effectively, therefore managing their reward and performance.

Suggests that managing performance should not just be a once‐a‐year appraisal of people, but should be a dynamic process integrating the various aspects of organizational and human resource management, including staff appraisal and development, as well as quality, standards, targets and outcomes, etc. Points out that the best route to organizational success is through people, and that service industries particularly are highly dependent on people to achieve the business goal. States that managing performance is achieved by managing change and communication, motivating and developing, and equipping the organization with the skills needed to move forward successfully. Integrating into the overall strategy, performance links inextricably with reward, job design, workforce profiling, competences and development. To be a learning company needs commitment to employee development ‐ this, in turn, means commitment to managing human resources effectively, therefore managing reward and performance.

Aarhus Kommunes Biblioteker (Teknisk Bibliotek), Ingerslevs Plads 7, Aarhus, Denmark. Representative: V. NEDERGAARD PEDERSEN (Librarian).