Performance management

Performance management is a tool that helps managers monitor and evaluate employees' work. The goal of performance management is to create an environment where people can perform to the best of their abilities and in alignment with the organization's overall goals. Performance management is widely used in both the private and public sectors.

Key Takeaway:
- Performance management is intended to help people perform to the best of their abilities in alignment with the organization's goals.
- It views individuals in the context of the broader workplace system and encourages their input in goal-setting.
- Performance management focuses on accountability and transparency and fosters a clear understanding of expectations.
- Rather than just annual performance reviews, performance management provides ongoing feedback to employees.

Benefits of Performance Management
Advocates of performance management maintain that it not only helps organizations attain their goals but makes work more fulfilling for individual employees, with the bottom-line benefit of improved worker retention.
For example, workers often feel blindsided by negative annual performance reviews. While performance management may also incorporate annual reviews, the ongoing feedback that managers provide throughout the year should result in fewer unpleasant surprises.