Performance management is the strategic and integrated approach to increasing the effectiveness of organizations improving the performance of people who work in them.
Effective performance management ensures that employees and managers understand each other’s expectations and how corporate strategy and objectives impact on their roles, behaviours, relationship interactions, rewards and futures.
It also ensures that all employees and managers know how to meet those expectations and goals are supported in doing so.
Performance management is a holistic process that ensures that the following are developed and effectively carried out:
- Setting of corporate, department, team and individual objectives.
- Performance appraisal systems.
- Reward strategies and schemes.
- Training and development strategies and plans.
- Feedback, communication and coaching.
- Individual career planning.
- Mechanisms for monitoring the effectiveness of performance management systems and interactions.