Performance management involves managers and workers discussing regularly how things are progressing. They set goals together, check on progress, and provide feedback to help individuals improve their performance at work.
It's not just a once-a-year review. Instead, managers and employees have ongoing conversations about work, learning new skills, and making sure everyone's efforts help the company succeed.
The main point is to help workers do their best work, learn and grow, and help the whole company win.
Performance management is a continuous, structured process that helps employees understand what is expected of them, how they’re performing, and how they can grow.
Setting goals: Setting goals is the foundation of effective performance management because it establishes clear expectations and gives employees a sense of direction. Strong goals are specific and measurable so that both the employee and the manager understand what success looks like.
Regular check-ins and feedback: Regular check-ins keep performance on track and ensure employees get the support they need. These conversations provide space to discuss progress, challenges, and shifting priorities. Feedback should be timely and specific so employees understand what they’re doing well and where they can improve. Consistent communication helps prevent surprises during formal reviews and strengthens trust between managers and employees.
Performance reviews: Performance reviews provide a structured moment to look back on an employee’s work over a set period and assess overall results. They summarise key achievements, challenges, and growth areas while reinforcing expectations for the future. Even though reviews are periodic, they work best when supported by ongoing check-ins throughout the year.
Coaching and development: Coaching and development focus on helping employees grow their skills, confidence, and long-term potential. Managers guide employees by offering practical advice, identifying learning opportunities, and encouraging continuous improvement.
Managers' role: Managers play the central role in performance management because they work closest to employees and directly influence their day-to-day success. Their responsibilities include setting clear goals, explaining expectations, and making sure employees understand how their work connects to the organisation’s priorities. Throughout the year, managers offer regular feedback, hold check-ins, and help remove obstacles that could affect performance.
Employees' role: Performance management is part of the employee lifecycle. Employees are active participants in the performance management process, not just recipients of feedback. Their role includes understanding the goals set for them, taking initiative in tracking their progress, and communicating openly about challenges or support they may need. Employees contribute by seeking feedback, applying coaching guidance, and pursuing opportunities to build new skills.
HR's role: HR provides the structure, tools, and guidance that ensure performance. This includes offering training for managers and employees, and helping define policies for goal-setting, reviews, and rewards.
Align goals with organisational strategy: Ensure every employee’s objectives directly support broader business priorities to maximise impact.
Set clear and measurable expectations: Define what success looks like so employees understand how their performance is evaluated.
Foster continuous feedback: Encourage regular check-ins and timely feedback to address issues early and reinforce positive behaviours.
Invest in manager coaching: Equip managers with the skills to provide effective feedback, guidance, and career development support.
Link performance to rewards and development: Tie promotions, raises, and learning opportunities to demonstrated achievements to boost accountability and motivation.
Use data to drive decisions: Track performance metrics, trends, and progress to identify top talent, skill gaps, and opportunities for improvement.
Promote a culture of growth: Support learning, skill development, and career progression as part of performance management to retain and engage employees.
Maintain fairness and transparency: Ensure evaluation processes are consistent, unbiased, and clearly communicated to build trust in the system.
Performance management is a continuous, collaborative process designed to help employees perform at their best, grow professionally, and contribute meaningfully to organisational success. By setting clear goals, providing regular feedback, conducting structured reviews, and offering coaching and development, organisations create an environment where employees understand expectations and feel supported in achieving them.
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