@ZipLine-- Absolutely. The size of an organization does not matter. Every organization or workplace needs to evaluate its performance and implement strategies to improve it. This means calculating costs and profits, efficiency and employee performance.
Without performance management planning, employees might get off track about their duties and efficiency. Employee appraisal and evaluation is necessary to make sure that every employee's goals match the goals of the organization. Performance management also gives opportunities for management and employees to engage in dialogue and help one another determine shortcomings that they can work on.
I actually think that smaller organizations are at an advantage when it comes to performance management planning because costs will be less and evaluations will be done much more quickly. For example, the 360-degree appraisal method is often very time consuming for large organizations but it would work great for a small workplace.