Performance Management

What is “performance management”?

Performance management refers to a process or system that an organization uses to not just only measure but improve the work performance of its employees. Although performance management more commonly involves monitoring, evaluating, and improving an individual employee’s work output, it can also refer to improving work performance at a wider level such as a team, department, or organization. Ultimately, companies carry out performance management so they can create a work setting that enables all employees to be their best and do their best. 

There are different components of performance management which include performance reviews, feedback, one-on-ones, performance improvement plans, goal setting, progress monitoring, and rewards and recognition programs. 

In performance management, managers play an essential role in monitoring their direct reports and employees. Because they work closely with employees and see them work within their teams, managers are the best people to evaluate their team members. 

As part of performance management, performance reviews and evaluations are traditionally conducted twice or once per year. This may involve a self-evaluation by the employee followed by a one-on-one formal performance review with a manager. While a yearly performance review has been the norm for many years, many organizations are shifting towards more frequent performance evaluations. Some are conducting them quarterly and monthly. Other companies even opt to have less formal one-on-one weekly feedback sessions between managers and employees. The rationale behind this is that managers do not have to wait until an annual performance review to give feedback to employees. This way, mistakes can be remedied early and improvements can be monitored more quickly.