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Performance Management

4 Steps of the Performance Management Process

The performance management process is a repeated set of steps that an organization adopts to manage employee performance. The following are the basic steps in the process.
Strategy → Performance Objectives → Feedback → Performance Review


The performance management process requires a set of objectives for each employee. These begin with the strategy of your organization, department and team. As such, strategic planning is the basis for performance management. For example, a restaurant that sets goals to improve menus and service that uses these goals to formulate performance objectives for staff.

Performance Objectives

Managers negotiation performance objectives with each of their direct reports. This is documented with a list of objectives for each employee for a time period such as a year or quarter. Objectives are often designed to be SMART. It is also common for them to be weighted whereby large initiatives count more towards performance.


Low performance is communicated immediately to give employees every chance to turn things around.

Performance Review

At the end of the performance period specified in the performance objectives, each manager reviews performance with each of their direct reports. The manager formally documents their evaluation and the employee is also asked to document a self-evaluation. The manager's review of the employee is used for performance management and the employee's self-evaluation facilitates the conversation and allows the employee to document their view of their performance. Employees may be asked to submit feedback from stakeholders or may reference this in their self-evaluation. The results of performance reviews feed into compensation reviews, bonuses, promotions, demotions, awards and recognition. Employees with low performance enter a performance improvement process that may lead to termination.


Employees may be asked to sign the performance review of the manager to indicate that they have received the evaluation.
The performance management process often includes an employee development process whereby there is a learning and development plan embedded in the performance objectives document.

Performance Management

This is the complete list of articles we have written about performance management.
Annual Review
Business Performance
Employee Feedback
Employee Goals
Goal Planning
Goal Setting
High Performance
Improvement Process
IT Performance
Low Performance
Measurable Goals
Performance Appraisals
Performance Issue
Performance Outcome
Performance Problems
Poor Performance
Quiet Quitting
Self Assessment
Team Performance
Work Improvement
Work Objectives
Work Outcome
Work Performance
Work Quality
More ...
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Performance Management

A comprehensive guide to performance management.

Low Performance

An overview of low employee performance with examples.


Examples of professional, academic and personal achievements.


An overview of common types of accomplishments with examples.

Employee Feedback

Useful examples of employee feedback.

Performance Improvement Process

An overview of the performance improvement process with examples.

Productivity Management

The definition of productivity management with examples.

Annual Review

A list of feedback areas for an annual employee performance review.

Management Competencies

An list of management competencies.

Employee Performance

The common types of employee performance.

Employee Issues

A list of common employee issues.

Work Achievements

Examples of work achievements that are measurable and specific.


An overview of employee leave with examples.

Market Culture

An overview of market culture with examples.

Work Improvement

Common examples of work improvement.

High Performance

The definition of high performance with examples.

Opportunities For Improvement

An overview of opportunities for improvement for employee performance with a list of examples.

Professional Improvement

A list of professional improvement examples.

Workplace Goals

An overview of workplace goals with a list of examples.
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