Process of Performance Management-What are the Process of Performance Management-What are Performance Management Process

Process of Performance Management

As part of the performance management process, employees and managers work together to set and evaluate short-term and long-term goals, career development, and the overall contribution of an employee to the company. In this article, we will discuss about process of performance management in brief with examples for your better understanding.

A two-way communication process is used to manage an employee’s performance. The employee and their manager work together to set, track, and evaluate the employee’s progress towards their job goals and the success of the organization as a whole. Organizations use performance management systems to keep track of how well their employees are doing and give them feedback and coaching to help them reach their goals and move up in their careers. Managing employee performance is about a lot more than just giving them an annual review. Performance management is an ongoing process that involves planning, coaching, and judging the performance of workers.

Process of Performance Management

Planning, training, evaluating, and rewarding are the steps of performance management. The performance management process of an organization is built on the strong foundation of each stage. Read on to discover everything there is to know about process of performance management and to become a subject matter expert on it.


This stage of Performance Management includes creating job descriptions and outlining the employee’s critical functions, as well as outlining the department’s or company’s strategic plans.


At this stage of Performance Management, performance standards are made to show how a specific job should be done to meet (or go above and beyond) expectations. The company gives these to new hires and uses them to determine their salaries and bonuses.


During this part of the Performance Management process, we keep an eye on how our employees are doing and give them feedback. If you want to provide constructive criticism, provide specific examples of work-related events, actions, and words that the recipient can check and observe.

This kind of feedback, which is called “behavioral feedback,” can help workers improve their work without making value judgements about their character or motivations.

The most Important Part

Human resources and upper management must set the job’s scope, length, key responsibilities, and evaluation criteria. There must be a clear set of performance standards, and goals must be written in the SMART format (specific, measurable, attainable, relevant, and time-based).

The Stage of Getting Feedback

After finishing the definition process, management should give employees the opportunity to provide feedback on the material. They do the work, so they know best what knowledge, skills, and goals will help the company succeed. The process of performance management includes providing regular feedback to employees regarding their performance.

The Stage of Getting Permission

Both management and the people in the role have agreed upon the role’s description, goals, and objectives. Collaboratively setting goals establishes the tone for performance management and empowers employees to take ownership of the outcomes.

Transparent Communication and Collaboration

Managers and leaders owe it to their workers to always be honest and straightforward. Employees dislike it when their employers keep them in the dark, especially during a crisis like the COVID-19 pandemic that could impact them.

Everyone wants to know what’s happening in the world. They desire to communicate with their supervisors and colleagues in real-time and establish positive relationships. There will be open communication and regular feedback, even though both can be hard or unsettling at times.


Early on in the planning process, management agrees to conduct performance reviews in order to measure progress and success. It is now time to assess employee efficiency in relation to established goals and standards. When management goes back to the planning stage, it helps them focus their efforts and use their resources more wisely.


When the company finally puts ideas into action, it can celebrate by giving bonuses to employees who have worked hard. The company raises the morale of its employees and highlights their contributions to show how important they are.

Many businesses have programmes in place to encourage and reward their employees. In the same way, rewards and perks can be more or less formal depending on the company.

Employee Recognition

Any good performance management system should put employee recognition and pay at the top of the list. The organization should recognize and value the work and contributions of its workers. If you don’t make it a priority to show your employees how much you appreciate them, you can expect a big rise in employees leaving on their own.

It is very important to give employees regular, constructive feedback and performance reviews. That’s the end of the story. Employees have a much better chance of improving and going above and beyond when they get feedback on their work on a regular basis.

Set up Meetings on a Regular and Timely Basis

The next step in the performance management process is to establish future work goals and objectives. Consistent coaching is important, and so is recognizing progress along the way. You should hold at least one meeting every three months, but holding one meeting per month is even better.

Give Required Training, Coaching, and Solutions

Instead of focusing on punishments for bad performance, these talks can be about ways to help people learn and solve problems.

Employees who don’t like being held responsible are less likely to admit when they’re wrong. In some situations, a company would do well to send its managers to this kind of training.

Frequently Asked Questions

How do you Keep Track of Performance?

Set goals with each member of the team for their department, for themselves, or for the whole team. One can use these goals to measure performance and output. These goals not only show how hard everyone is working, but they also make it easy to get them going.

Who is in Charge of Managing Performance?

The manager’s job is to help employees reach their full potential and keep performing at that level by teaching, praising, and giving constructive criticism. However, it is up to the worker to actively look for and use suggestions for better performance.

What is the History of Performance Management?

As the commercial and industrial sectors grew in the 1920s, performance management became more and more important. Companies’ focus on optimising mass production has made them pay more attention to streamlining their own processes. The management thought that improving working conditions and employee morale were less important.


Check out this collection of essays for more insights on process of performance management system topic from a variety of perspectives. But if we try to solve problems, we might find that there aren’t as many big differences between performance management here and in a faraway land. Also, this makes it easier for company leaders and human resources departments to make performance management strategies fit the needs of their employees. In a hybrid environment, where one can tailor communication to the user’s needs and make it easily accessible, it functions better. In this article, we will discuss about process of performance management in brief with examples for your better understanding.