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Performance Management


Man and woman in formal business attire talk across a desk.

Performance Management Replaces Appraisal

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Human Resource Management Glossary Index:

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Performance management is the process of creating a work environment or setting in which people are enabled to perform to the best of their abilities. Performance management is a whole work system that begins when a job is defined as needed. It ends when an employee leaves your organization.

Many writers and consultants are using the term “performance management” as a substitution for the traditional appraisal system. I encourage you to think of the term in this broader work system context. A performance management system includes the following actions.

  • Develop clear job descriptions.

  • Select appropriate people with an appropriate selection process.

  • Negotiate requirements and accomplishment-based performance standards, outcomes, and measures.

  • Provide effective orientation, education, and training.

  • Provide on-going coaching and feedback.

  • Conduct quarterly performance development discussions.

  • Design effective compensation and recognition systems that reward people for their contributions.

  • Provide promotional/career development opportunities for staff.

  • Assist with exit interviews to understand WHY valued employees leave the organization.

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Also Known As: Performance Appraisal, Performance Evaluation, Performance Review

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