What is Performance Management? *

Performance Management is a holistic, dynamic system of integrated processes that together foster high levels of organizational performance.  A performance management system is designed based on the organization’s vision, mission and strategy.  It is also based on available resources (time, money, people/skills), and the desired culture needed to support the strategy and to respond to change effectively.

The five steps in the performance management process: *

  1. Performance Planning  – the collaborative, performance planning process between manager and employee to determine expectations, performance goals, individual roles, and job description/responsibilities based on the department’s goals, objectives and targets leading to the organization’s strategy.
  2. Performance Motivation – the collaborative  process  between manager and employee to discuss what motivates the employee and how both people can ensure at least some of those motivations are put into play.
  3. Employee Development – the collaborative  process  between manager and employee to determine areas of growth and how to close any performance gaps through on-the-job training, self-directed learning, internal/external classes, and/or coaching.
  4. Evaluating Employee Performance – the collaborative  process  between manager and employee to evaluate past performance progress and review performance plans for the future.
  5. Performance Recognition – the collaborative  process  between manager and team to design methods of informal and formal, high performance, recognition that is meaningful to employees; manager and team implement.

Diagram showing the many interrelated processes: *



US Dep’t of Commerce: Performance Management System Handbook

Mindmap of Performance System Factors


Rita SterlingPerformance Management