The HR Dictionary

Performance Management

Performance management refers to the process of creating and maintaining a work environment that enables employees to perform to the best of their abilities. It is a continuous process that involves setting clear expectations, providing feedback, and developing the skills and capabilities of employees to enhance their job performance.

What is Included in Performance Management?

Performance management encompasses a range of activities, including:

  • Performance appraisal and evaluation - HR professionals play a critical role in the performance appraisal process. They develop performance metrics and tools, conduct performance evaluations, and provide feedback to managers and employees.
  • Goal setting - HR professionals work with managers to develop performance goals that are aligned with the company's strategic objectives. These goals should be specific, measurable, achievable, relevant, and time-bound.
  • Performance improvement plans - HR professionals work with managers to develop performance improvement plans when an employee's performance is not meeting expectations. These plans outline specific steps for improving performance and typically include specific goals, objectives, and timelines.
  • Training and development - HR professionals work to develop employee skills and capabilities through training and development programs. These programs may include on-the-job training, mentoring, coaching, and formal training courses.
  • Rewards and recognition - HR professionals play a key role in developing and implementing employee rewards and recognition programs. These programs may include bonuses, promotions, awards, or other forms of recognition for employees who demonstrate exceptional performance.

Effective performance management in HR can help organizations to improve employee engagement, retention, and productivity. By creating a work environment that supports employee growth and development, organizations can enhance their overall performance and achieve their strategic goals. And an HRIS like OrangeHRM with powerful performance management features can help organizations automate their performance management process to run smoothly and effectively all while providing a bird’s eye view of the whole process.