From Susan M. Heathfield,
Your Guide to Human Resources.
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Performance management encompasses the most important people issues in your organization. Performance management includes the entire relationship you have with the people you employ.

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 and expectations are clearly communicated to the employee. It ends when an employee leaves your organization.

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

• 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.

Intrigued about performance management and its potential contribution within your organization? Take a look at the rest of this performance management special resource for all of the current information about performance management. Join the people in forward thinking organizations who retain their best talent and achieve their goals.