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What is Performance Management?

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Performance management is the process of identifying employee objectives and regularly evaluating how well employees perform in meeting those objectives. This is a basic type of management due diligence that supports processes such as compensation, compliance, employee retention, promotions and employee development.

Strategy Implementation

Performance management is a basic method of strategy implementation and control of factors such as productivity. Each employee in a hierarchical organization typically develops a set of objectives that align to business strategy together with their manager. Managers are responsible for the performance of their direct reports and accountable to the performance of their indirect reports.

Policy & Compliance

Regular reviews of performance also serves as a tool for policy implementation in areas such as professional conduct, organizational culture, compensation, employee development programs, training and employee relations.
Overview: Performance Management
Type
Human Resource Management
Management
Definition
The process of identifying objectives and continually evaluating how well employees perform in meeting those objectives.
Notes
Some definitions of performance management include the evaluation of processes, systems and other non-human elements. This is reasonably rare in practice as such evaluations are usually considered optimization, process improvement or business metrics.
Related Concepts

Human Resources

This is the complete list of articles we have written about human resources.
Balanced Scorecard
Bench Strength
Bozo Explosion
Career Planning
Competency
Compliance Risk
Competency Models
Corporate Culture
Culture Fit
Contingent Workforce
Employee Behavior
Core Competency
Employee Benefits
Employee Costs
Employee Data
Employee Development
Employee Engagement
Employee Relations
Employee Retention
Employee Satisfaction
Employer Branding
Employee Expectations
Hire To Retire
Employee Experience
Human Capital
Employee Motivation
Job Depth
Key Employees
Leave
Meritocracy
Onboarding
Exit Interview
People Operations
Formal Communication
Performance Metrics
Full-Time Equivalent
Recruitment
Goal Setting
Succession Planning
Talent Management
Internal Branding
Work Performance
Internal Communication
Work Schedule
Job Levels
Working Conditions
Job Orientation
Workplace Issues
Knowledge Capital
Workplace Privacy
MBO
Mission Statements
Objective
Org Structure
Improvement Plan
Performance Mng
Performance Objectives
Professionalism
SMART
Training
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