Performance Management – Meaning, Features, Need and Cycle

Performance Management

Meaning, Features, Elements, Need and Cycle of Performance Management


Performance management is the integration of performance appraisal systems with broader human resource systems as a means of aligning employees’ work behaviours with the organisation’s goals.

Features of Performance Management that differentiates it from Performance Appraisal
1. Performance management never means just meeting with a subordinate once or twice a year to ‘review your performance’. It means continuous, daily or weekly interactions and feedback to ensure continuous improvement.
2. Performance management is always goal-directed. The continuing performance reviews always involve comparing the employee’s or team’s performance against goals that specifically stem from and link to the company’s strategic goals.
3. Performance Management means continuously reevalauting and (if need be) modifying how the employee and team get their work done. Depending upon the issue, this means additional training, changing work procedures, or instituting new incentive plans, for instance.

Basic Elements of Performance Management

1. Direction sharing
It means communicating the company’s higher-level goals (including its vision, mission, and strategy) throughout the company and then translating these into doable departmental, team, and individual goals.

2. Goal alignment
It means having a process that enables any manager to see the link between an employee’s goals and those of his or her department and company.

3. Ongoing performance monitoring
It usually includes using computer-based systems that measure and then e-mail progress and exception reports based on the person’s progress toward meeting his or her performance goals.

4. Ongoing feedback
It includes both face-to-face and computer-based feedback regarding progress toward goals.

5. Rewards, recognition, and compensation
These all play a role in providing the consequences needed to keep die employee’s goal-directed performance on track.

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