Career Development

What is Performance Management?

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What is performance management? 

Performance management is a way to supervise and evaluate employee work. 

Some aspects of performance management are:

  • Creation of a performance management policy and framework
  • Knowing and understanding the job functions of employees
  • Understanding how employee jobs fit in with the business goals
  • Measuring employee performance after determining the performance evaluation measures and perimeters
  • Understanding how teamwork between management and employees can improve performance
  • Empowering employees to own their performance and enable them to make decisions with performance evaluation feedback
  • Reducing or getting rid of things that hinder or prevent good employee performance

Performance management uses face-to-face and written communication to create personalized employee goals.

What is the purpose of performance management?

The purpose of performance management is to help employees understand how their abilities, actions and adherence to company conduct meet company expectations and goals. Any performance management evaluation is a process of communication between managers and employees to meet the necessary objectives for the company. This process involves creating expectations, setting objectives and identifying goals.

Key stages of performance management

Here are some key stages to include when creating a performance management plan:


When you create your performance management plan, focus on employee professionalism. Professionalism is developing strong relationships with coworkers and management. Committed employees focus on project deadlines and being part of the company culture to benefit the company’s goals.

Communication skills

Demonstrate good communication skills, both verbal and written in a performance management evaluation. You should be skilled in communicating your expectations clearly and in an organized manner. Keeping your communication constructive can help the person you’re evaluating understand their role and duties. 


Exercising leadership in performance management is essential. Employees should show initiative in managing themselves and others. Employees, as leaders, should know how to appreciate workplace contributions from others to reach the company’s goals.

Emotional management

Employees should show appropriate expression of emotion in the workplace that follows guidelines in the company employee handbook. Employees should learn how to cope with any situation, even if these situations are stressful. Keeping their composure even under stressful situations would be part of the criteria of an employee’s performance management evaluation.

Time management

Insist on time management in performance management. Managing time with organizational and scheduling skills is critical to meeting project deadlines. Employees who routinely meet deadlines for projects are an example of time management.

Performance management example

When you create a performance management standard, you need to have objectives and criteria for how you will measure employee performance. 

Here is an example to help guide you in creating a performance management analysis: 


Objective One: Employee Professionalism

Employees will demonstrate professionalism by acting with courtesy to coworkers and management. Company employees will communicate and act toward others with politeness and honesty.

Objective Two: Communication Skills

Employees will be able to communicate verbally and in written form so others can understand them. Communications will be made in a timely manner to all stakeholders (coworkers, management, clients, vendors, etc.). All written communications will be archived for future reference and all telephone calls related to the business will be logged for future reference.

Objective Three: Leadership

Employees will show leadership in the workplace by taking initiative on their assigned roles and projects. All employees will value the contributions of their coworkers as part of a team. Employees will encourage and help each other to take initiative in the workplace.

Objective Four: Emotional Management

Employees will show appropriate emotions in the workplace. All employees will manage their emotions in a professional manner. Employees must be aware and respond appropriately to their coworkers’ emotions. Consult the employee handbook for guidelines on appropriate emotional expression in the workplace.

Objective Five: Time Management

All employees will manage their time properly during the workday. Employees will be present and on time to work, unless employees have a valid reason (sickness, injury, paid time off, etc.) as specified in the company employee handbook. Employees will meet deadlines and work schedules.

Performance management tips

Performance management is essential to the workplace. 

Here are some tips for performance management:

  • Research performance management templates that have been successful
  • Archive performance management templates and documents for future reference
  • Define performance management standards specific to your workplace
  • Allow employees to contribute ideas and values in creating performance management standards
  • Define your company’s goals for both management and employees

Research performance management templates that have been successful

Build on these previous review templates to customize them for individual employees.

Archive performance management templates and documents for future reference 

Measure employee professional growth with these documents to create better performance management in the future.

Define performance management standards specific to your workplace

Understand how customized performance management standards will benefit your employees and the workplace by creating a fair and measurable template for employee performance, behavior, actions and accountability. Create performance management evaluation standards that take into account different cultures and demographics in your workplace.

Allow employees to contribute ideas and values in creating performance management standards

Knowing and understanding the job functions of employees with their ideas and input contributes to making performance management standards relevant to your workplace. Employee input is useful to building a more positive team environment. Stronger communication between employees and management about performance management standards helps to align employee performance with company goals.

Define your company’s goals for both management and employees

Set the same standards, goals and outcomes for employees and management. Having the same standards for both management and employees during a performance management evaluation creates a productive environment of trust, communication and teamwork. Align the performance management goals and outcomes for the performance management with your company’s goals and your company culture.