Overview of Performance Management

Performance management is essential for cultivating a high-performing workforce. It is a structured process that aligns individual contributions with the company's goals, while also encouraging continuous improvement and accountability. This chapter offers a broad overview of performance management, detailing its purpose, key components, and significance in promoting both employee development and business success.

At its core, performance management involves setting clear expectations, tracking progress, and providing feedback to employees. This process includes multiple stages, starting from setting objectives and defining competencies, to conducting regular check-ins and identifying opportunities for growth. It is a dynamic, ongoing process that enhances engagement and productivity.

Throughout this chapter, you will explore the foundational elements of performance management and understand how it integrates into the broader HR framework. You will also learn about the mutual benefits of this process, as it helps employees reach their potential while providing value to the company.

By the end of this chapter, you will have a clearer understanding of performance management and its critical role in modern HR practices. This knowledge will provide a strong foundation for exploring subsequent chapters, which will offer more detailed guidance on implementation and best practices.