What is Performance Management?

Performance Management, or in short, PM, is a process that’s used by organisations to align their management, talents, departments, as well as the processes of product development together. Essentially, it tracks accountability and progressive efficiency. Employers can use it to ensure their employees are constantly improving and showing results, whilst organisations implement it to maintain the company’s efficiency and growth on a regular basis.

It’s not to be confused with being a self-evaluation method or yearly appraisals which is the traditional way of giving feedback to validate one’s achievements at work. There’s no measuring tool used but employees are given a set of common goals from the organisation which they are expected to align themselves to. These goals can be tweaked as time goes.

Through PM procedure, employees no longer need to wait for a prolonged period to hear about their performance and employers can identify potential issues and resolve them in their premature stages. It also helps to maintain the efficiency and satisfactory levels of work carried out by the entire organisation.


Related: How to Conduct an Effective Employee Performance Review


In essence, the method brings more benefits than negatives to a particular company. It helps to create and maintain a healthy and tip-top working environment from the top-down. By giving a set of objectives and career goals which employees are expected to adhere and realign themselves to, the employers can be confident about employee productivity, effectiveness, and their accountability towards tasks at hand. Overall, job tasks become clearer, internal communication strengthens and stress levels reduces between employer and employees.

The interaction between an employer and employee will improve greatly with this mode of strategy. Employees are able to get direct and clear guidance and feedback from their leaders as they progress with work, climb up their career ladder, and attain shared goals. Most of the time, this is what employees yearn for. For leaders to be hands-on and present for training and their development plans. It’s important for them to be able to sharpen their skills and contribute to the organisation whilst given the acknowledgment by their bosses. Employees become more motivated and work harder to reach common goals and self-achievement through this.


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There’s no form, templates, or set rules on how PM’s are carried out in various organisations. To break it down, there are a few key things that can be done to implement this in your organisation. Firstly, identify the mutual goals and objectives. It can be divided into short-term and long-term goals. Transparency is crucial and alteration on the set goals can be made depending on the results. Let the employees know the reason behind the goals or what inspired its inception. Secondly, set performance expectations; for the employees and employers (leaders in the organisation). Map out the results expected and the steps that can be taken to achieve those. Thirdly, monitor and evaluate performance while giving one-on-one feedback and rewards often. Repeat the basic cycle by re-evaluating the goals based on the outcomes and results from the previous year or plan.


Related: Management Tips: How to Ensure Your Team’s Success


Conclusion to The Importance of Performance Management

In conclusion, it can be devised that through the implementation of Performance Management processes, organisational success can be achieved by meeting or exceeding expectations. It relies heavily on employee engagement and not just the top management hence, it’s vital to build an impeccable relationship with them. Keep in mind that constant motivation from employers to employees can spark interest, improve morale, and preserve loyalty in the long run. This is great for the organisation’s long-term development. All the best!

3-Point Quick Checklist:

Standard Performance Management Process

  • Short Term and Long Term Goals and Objectives
  • Progress Level of Employee Efficiency and Accountability
  • Feedback and Rewards

Does your organisation practice a good performance management process? Share your experience with us in the comment box below.

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