Performance management is an essential process of employee engagement and development. It is a continuous cycle of planning, monitoring and evaluating an individual or team’s performance in order to ensure that organisational goals and objectives are met, and that people are able to maximise their potential and continuously improve their performance. Performance management utilizes valuable feedback and performance coaching to measure, evaluate and develop performance effectively.

Performance management typically involves goal setting, monitoring, feedback, and continual proactive intervention to motivate employees, reinforce desired behaviors, redirect individuals away from inappropriate behavior, and communicate expectations. Such activities include developing individual performance plans, monitoring progress, holding regular performance reviews, conducting course for improvement or disciplinary action, providing constructive feedback and coaching, and making decisions about rewards, pay and recognition.

The primary goal of performance management is to create an environment which supports people to recognize and build on their strengths and then apply them to achieve success. It promotes team building, collaboration and communication by emphasizing the importance of working as a team. It drives performance through understanding and using the individual’s talent. Performance management also facilitates roles and responsibilities and how they align with the organization’s values, goals and objectives.

Performance management allows organizations to systematically measure short-term and long-term employee performance relative to a set of performance objectives. It provides organisations with a solid foundation for developing an effective and motivated workforce by establishing the right competencies, setting and adapting job responsibilities,  aligning performance milestones with strategic goals and evaluating job performance.

Performance management helps organisations ensure fairness and consistency in their personnel policies and practices. Regular check-ins and performance appraisals help focus on development and progression while maintaining a healthy working environment by dealing with problems early, providing development opportunities and identifying future stars. Ultimately, performance management creates a culture of ownership and accountability among employees, results in better job satisfaction,  increased morale, improved quality of work and greater fund for businesses.