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Performance management


Performance management is a process of continuing, in-person dialogue between an employee and a manager about how well the employee is carrying out his or her job. It is a powerful tool for engaging employees and linking their performance to organizational objectives so that everyone is focused on the success of the business.

Many factors contribute to effective individual performance. These include:

  • A clear role description and objectives that outline what is expected of an employee
  • An effective process that helps the employee meet targets and objectives
  • A tracking and feedback system that helps employees understand their performance
  • Active rewards and recognition programs that allow employees to take pride in their successes
  • Training programs that help employees learn fundamental skills
  • Coaching support to help employees continuously improve

More about performance management

Employee performance is affected by a company’s working environment, which is determined by formal elements such the company’s vision and mission statements and by informal factors such as how the workplace actually functions day to day. All of these together tell employees what matters most to managers. A positive working environment makes it easier for people to achieve their individual goals.

Useful resources


Employee performance management: Use the SMART approach

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Employee evaluations: 9 tips for more effective performance evaluations

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