Performance Management

Performance Management is the ongoing organisational process of setting expectations, measuring employee outcomes and improving performance through feedback and development.

What is Performance Management

Performance Management aligns individual goals with business objectives. It uses clear goals, performance metrics and regular conversations to track progress and identify development needs.

How it works

The process typically includes goal setting, continuous feedback, formal reviews, performance ratings and development plans. Managers and employees meet routinely to review outcomes, adjust priorities and agree next steps.

Effective performance management supports fair assessment and continuous improvement rather than one time judgement.

Practical usage

In HR and recruitment, Performance Management informs promotions, pay decisions, training investment and succession planning. It also supports compliance by documenting performance issues.

• Use case: Annual review cycle to set goals and calibrate pay.
• Use case: Regular one on one meetings for real time feedback.
• Use case: Performance improvement plan for underperforming staff.

Related concepts

Related HR terms include performance appraisal, feedback, KPIs, talent management, succession planning and employee development. These concepts work together to measure, develop and retain talent.