ABSTRACT
The above quotation is from George Orwell’s (1946) famous satire, Animal Farm. The pigs believed that although all animals were equal, but when the importance of each animal’s contribution to the community was considered, some animals (the pigs) should be regarded as more equal than the others. It was a clear case of differentiation. A major outcome that should emerge from any performance management is the differentiation of employees according to their performance and potential. All employees and managers can never perform at the same level. Axelrod, Handfield-Jones and Welsh (2001: 9) noted that the best 20 per cent or so of managers raise operational productivity, profit and sales revenue much more than average performers do. In one manufacturing company they found that the best plant managers increased profits by 130 per cent.
