# Chapter 1: Introduction to Performance Management

In today’s fast-paced business environment, managing employee performance is not just an HR task, it’s a critical driver of organisational success. This chapter introduces the **Performance Management** module and explores its purpose, features, and impact on employee engagement and productivity. You’ll gain an understanding of how this tool aligns individual and team objectives with broader organisational goals, while fostering a culture of accountability and continuous improvement.

By the end of this chapter, you’ll appreciate why performance management is a vital component of effective talent management and how the SignifyHR platform equips you to implement it seamlessly.

# Overview of Performance Management

![Signify Header.png](https://signature.signifyhr.co.za/uploads/images/gallery/2025-02/emW3hfMrZ1yIDMUv-signify-header.png)

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.

![PM Dashboard.png](https://signature.signifyhr.co.za/uploads/images/gallery/2025-01/JYRLMNgedxfVwSUK-pm-dashboard.png)

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.

![Signify Footer.png](https://signature.signifyhr.co.za/uploads/images/gallery/2025-02/ZOt8yZwhbiGx2d6U-signify-footer.png)  
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# Purpose of the Module

![Signify Header.png](https://signature.signifyhr.co.za/uploads/images/gallery/2025-02/emW3hfMrZ1yIDMUv-signify-header.png)In a dynamic and competitive business environment, companies must ensure that employees perform at their best while contributing to broader strategic goals. The **Performance Management** module serves as a structured framework designed to enhance employee performance, align individual contributions with the company's objectives, and create a culture of continuous improvement.

![PM Purpose.png](https://signature.signifyhr.co.za/uploads/images/gallery/2025-02/jbylxKNbRJJikgwC-pm-purpose.png)

Effective performance management is not just about evaluating past performance<span style="font-size: 11.0pt; line-height: 107%; font-family: 'Aptos',sans-serif; mso-ascii-theme-font: minor-latin; mso-fareast-font-family: Aptos; mso-fareast-theme-font: minor-latin; mso-hansi-theme-font: minor-latin; mso-bidi-font-family: 'Times New Roman'; mso-bidi-theme-font: minor-bidi; mso-ansi-language: EN-ZA; mso-fareast-language: EN-US; mso-bidi-language: AR-SA;"><span style="mso-spacerun: yes;"> </span>– </span>it is a proactive approach to **setting expectations, developing skills, and fostering engagement**. Some benefits include:

- - - Improving productivity
        - Ensuring accountability
        - Identifying gaps in training
        - Building a culture of continuous feedback

This module enables managers and employees to have open discussions about goals, competencies, and career development, ensuring that every team member understands their role in achieving success. Furthermore, it establishes clear performance metrics, helping companies **identify high performers, address skill gaps, and drive productivity improvements**.

By leveraging the **Performance Management** module, companies can create a structured, transparent, and fair approach to managing talent. This module is instrumental in building a high-performance culture where employees feel valued, motivated, and supported in their professional journeys. The following sections will explore its purpose in greater detail, including how it aligns with business goals, enhances employee engagement, and contributes to the growth of the company.

### Key Components

- **Goal setting and alignment with organisational objectives** ensure that employees understand their responsibilities and how their contributions support broader business strategies.
- **Regular performance reviews and feedback cycles** allow employees to recognise their strengths, identify areas for improvement, and adjust their approach to meet expectations.
- **Metrics and key performance indicators (KPIs)** are quantitative and qualitative measures to help assess employee performance against predefined standards, providing a data-driven approach to decision-making.
- **Training, development, and career progression plans** play a crucial role in employee retention and long-term organisational growth.

### Aligning Goals and Objectives

For a company to achieve sustainable success, employees must understand how their roles contribute to broader business objectives. The **Performance Management** module bridges the gap between **personal career aspirations** and **strategic goals**, ensuring that employees focus on outcomes that drive growth. By defining expectations, tracking progress, and providing continuous feedback, it creates a structured approach that aligns individual development with company priorities.

When employees see the direct impact of their contributions, they become more **engaged**, **motivated**, and **productive**. A well-structured performance management system translates high-level business strategies into actionable, measurable objectives at every level. This clarity helps employees understand their responsibilities and see a clear path for growth within the company.

Aligning individual and company goals benefits both employees and the business. Employees gain direction, purpose, and development opportunities, while the company fosters a culture of **accountability**, **efficiency**, and **continuous improvement**. By implementing performance management effectively, businesses can create an environment where individual success and company objectives align seamlessly.

![Performance Management's benefits for employee and company](https://signature.signifyhr.co.za/uploads/images/gallery/2025-02/aA8vAfHDZO0cGYaI-pm-benefits-for-employee-and-company.png)

### Employee Engagement and Organisational Success

Engaged employees drive company success. When they receive regular **feedback** and **recognition**, they feel valued and remain committed to their roles. The **Performance Management** module ensures employees have clear expectations, structured support, and opportunities for continuous development.

More than just motivation, effective performance management helps managers detect and address disengagement before it affects productivity. It promotes open dialogue, allowing employees to share concerns and receive guidance. This proactive approach **reduces turnover**, **strengthens job satisfaction**, and cultivates a **supportive work environment**.

By integrating modules such as [**Learning Management**](https://signature.signifyhr.co.za/books/learning-management "Learning Management") and [**Career and Succession Planning**](https://signature.signifyhr.co.za/books/career-and-succession-planning "Career and Succession Planning") into the **Performance Management** module, companies foster a culture of **growth**. Employees who see clear advancement opportunities are more likely to stay engaged and contribute meaningfully. Empowering individuals through goal-setting and skill development not only enhances their careers but also drives business success.

![Signify - Develop Modules](https://signature.signifyhr.co.za/uploads/images/gallery/2025-02/scaled-1680-/qiishYS08u7rDIwN-signify-develop-modules.png)

<div class="flex-1 overflow-hidden @container/thread" id="bkmrk-enhancing-performanc"><div class="h-full"><div class="react-scroll-to-bottom--css-ooofw-79elbk h-full"><div class="react-scroll-to-bottom--css-ooofw-1n7m0yu"><div class="flex flex-col text-sm md:pb-9"><article class="w-full text-token-text-primary focus-visible:outline-2 focus-visible:outline-offset-[-4px]" data-scroll-anchor="true" data-testid="conversation-turn-69" dir="auto">### Performance Management and Technology

Technology streamlines performance management by automating reviews, tracking progress, and providing real-time feedback. Platforms like **SignifyHR** integrate goal setting, performance tracking, and analytics to improve decision-making. Centralised records and data-driven insights help identify top performers and address skill gaps. Digital tools also support continuous learning by linking training and career development to performance goals. By leveraging technology, organisations create a more efficient, transparent system that enhances employee growth while aligning talent strategies with business objectives.

</article></div></div></div></div></div>![Signify Footer.png](https://signature.signifyhr.co.za/uploads/images/gallery/2025-02/ZOt8yZwhbiGx2d6U-signify-footer.png)

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# Key Features of the Module

![Signify Header.png](https://signature.signifyhr.co.za/uploads/images/gallery/2025-02/emW3hfMrZ1yIDMUv-signify-header.png)

The **Performance Management** module is designed to streamline and enhance the performance review process, making it more intuitive, transparent, and effective. With a range of **powerful features**, this module simplifies performance tracking, fosters meaningful feedback, and ensures alignment with the company's goals. Our system integrates automation, flexibility, and data-driven insights, thereby removing the complexity often associated with performance management. These features not only set the **Performance Management** module apart but also add significant value by creating a **structured, user-friendly experience** that supports employees and managers in collaboratively working towards improvement.

![PM Key Features.png](https://signature.signifyhr.co.za/uploads/images/gallery/2025-02/zLeA6DaNtdzui9QC-pm-key-features.png)

<details id="bkmrk-documentation-and-co"><summary>Documentation and Compliance</summary>

#####  Terminology

The **Performance Management** module allows for **customisation of terminology**, ensuring that system labels, messages, and descriptions align with the company's unique performance management framework.

##### Audit Log of Transactions

The system keeps an **audit log** that records all transactions and modifications made to a **performance agreement**, ensuring transparency, accountability, and traceability throughout the performance management process.

##### Documents Upload

During the appraisal process, users can **upload multiple documents** per **KPI** to support performance evaluations. A summary of all uploaded documents is easily accessible on the dashboard.

##### Print Agreements

Performance agreements can easily be printed in **PDF** format.

![PM Print performance agreement.png](https://signature.signifyhr.co.za/uploads/images/gallery/2025-02/scaled-1680-/6DK8EtPn6Ouvtouq-pm-print-performance-agreement.png)

</details><details id="bkmrk-workflow-and-automat"><summary>Workflow and Automation</summary>

##### Templates

Performance agreements can be stored in a **template library**, allowing users to select a pre-populated template when creating a new agreement. This ensures that objectives are automatically copied to the individual's agreement, streamlining the setup process.

##### Notifications

The system automatically notifies employees and managers via email when objectives are submitted, check-ins are conducted, or ratings are completed. Additionally, **automated reminder emails** can be sent before phase end dates to ensure timely completion.

![PM Notifications.png](https://signature.signifyhr.co.za/uploads/images/gallery/2025-02/0e8pxcUSgPQcUwO4-pm-notifications.png)

##### Dashboard

The **Performance Management** dashboard allows employees to select the performance year and managers to view their own agreements or those of their direct reports. A collapsible **timeline section** outlines key review phases, while colour-coded indicators clearly display progress and the status of each phase.

![PM Dashboard (Employee).png](https://signature.signifyhr.co.za/uploads/images/gallery/2025-02/scaled-1680-/85r3zK2AXPRkKI6V-pm-dashboard-employee.png)

</details><details id="bkmrk-review%2C-feedback%2C-an"><summary>Review, Feedback, and Planning</summary>

##### Check-ins

The **check-ins** functionality allows managers and employees to assess progress before the **rating phase** begins, providing an opportunity to confirm whether the employee is on track and address any potential challenges in advance.

##### Review Surveys

Review surveys can be linked to the **review setup**, where applicable, to gather comprehensive feedback from multiple sources, such as in a **360-degree review** process.

##### Action Plan

An optional **Action Plan** section can be enabled to monitor training and other activities throughout the **performance management** process, with actions recorded for each **KPI**. This section includes key details such as required actions, implementation methods, training needs, responsible persons, due dates, progress tracking, and comments from both the employee and manager.

![PM Action plan example.png](https://signature.signifyhr.co.za/uploads/images/gallery/2025-02/4dy21Py2EkenFy8d-pm-action-plan-example.png)

</details><details id="bkmrk-performance-evaluati"><summary>Performance Evaluation and Ratings</summary>

##### Ratings Beyond KPA-level

The **Performance Management** module allows for ratings beyond **Key Performance Areas (KPAs)**, extending to **Key Performance Indicators (KPIs)**, **stretch targets**, **company values**, and **leadership behaviours**. Each section allows for structured input, including rating scales, measures, weights, and manager and employee comments, ensuring a comprehensive and customisable evaluation process. Additionally, **perspectives** can be activated to categorise KPAs, following the Balanced Scorecard approach.

![PM Performance agreement sections.png](https://signature.signifyhr.co.za/uploads/images/gallery/2025-02/9UHdcY5sRlKe6Wys-pm-performance-agreement-sections.png)

##### Customisable Rating Scales

The **customisable rating scales** allow companies to define their own scoring criteria, ensuring alignment with internal performance measurement standards and providing flexibility in evaluating employee achievements across different performance areas.

##### Calibration

The **calibration** functionality promotes fairness and consistency in performance evaluations by allowing administrators to adjust scores at the **review period**, **review survey**, and overall **final score** levels. Administrators can export scores, make necessary calibrations with justifications, and then re-import the adjusted scores into the system. Employees can view their calibrated scores on the Performance Management dashboard, with the option to hover over the score to see the original rating before calibration.

![PM Review Items.png](https://signature.signifyhr.co.za/uploads/images/gallery/2025-02/2wBZvBpGfH8oxa8s-pm-review-items.png)

##### Interpolation

The **interpolation functionality** allows actual values to be mapped to a **rating scale**, ensuring a more precise and automated evaluation process. During the **rating phase**, users enter actual values, which are then automatically converted into ratings based on predefined mappings, eliminating the need for manual rating selection. This functionality can be enabled at the **KPI level** and is available in the **objective setting phase** when creating **templates, copying agreements, or setting up blank agreements**, providing flexibility in performance assessments.

![PM Interpolation settings.png](https://signature.signifyhr.co.za/uploads/images/gallery/2025-02/cGJc00TU4OGFXGae-pm-interpolation-settings.png)

</details>![Signify Footer.png](https://signature.signifyhr.co.za/uploads/images/gallery/2025-02/ZOt8yZwhbiGx2d6U-signify-footer.png)

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# Aligning Performance Management with Employee Development

![Signify Header.png](https://signature.signifyhr.co.za/uploads/images/gallery/2025-02/emW3hfMrZ1yIDMUv-signify-header.png)

The **Performance** **Management** module plays a crucial role in the <span style="color: rgb(26, 156, 171);">**Develop** </span>phase of the employee lifecycle. Integrated with other key modules such as [**Learning Management**](https://signature.signifyhr.co.za/books/learning-management "Learning Management"), [**Event Management**](https://signature.signifyhr.co.za/books/event-scheduling "Event Management"), and [**Personal Development Plan**](https://signature.signifyhr.co.za/books/personal-development-plan-AdY "Personal Development Plan"), this module ensures that employees are continuously supported, guided, and evaluated to enhance their professional growth.

<div id="bkmrk--1">![Signify - Develop Modules.png](https://signature.signifyhr.co.za/uploads/images/gallery/2025-02/yPlLsuAiSHZaypzi-signify-develop-modules.png)</div>Remember, **Performance Management** is just one part of a broader employee lifecycle.

- In the <span style="color: rgb(68, 150, 212);">**Attract** </span>phase, modules like [**Recruitment**](https://signature.signifyhr.co.za/books/recruitment-dqa "Recruitment"), [**Job Profiling and** **Competency Analyser**](https://signature.signifyhr.co.za/books/job-profiling-and-competency-analyser "Job Profiling and Competency Analyser"), and [**Recruitment** ](https://signature.signifyhr.co.za/books/recruitment-requisition "Recruitment Requisition")**[Requisition](https://signature.signifyhr.co.za/books/recruitment-requisition "Recruitment Requisition")**  ensure that the right talent is identified and matched to organisational needs.
- The <span style="color: rgb(148, 74, 242);">**Manage** </span>phase includes **Onboarding and Offboarding**, [**People Management**](https://signature.signifyhr.co.za/books/people-management-d8c "People Management"), [**Employee Self-Service**](https://signature.signifyhr.co.za/books/people-management-d8c/page/update-a-persons-profile "Update a Person's Profile"), [**Leave Management**](https://signature.signifyhr.co.za/books/leave-management-UmH "Leave Management"), [**Salary Review**](https://signature.signifyhr.co.za/books/salary-review "Salary Review"), and **Payroll (3rd Party)**, all of which contribute to efficient workforce administration.
- Finally, the <span style="color: rgb(175, 0, 78);">**Retain** </span>phase focuses on long-term engagement through [**Reward and Recognition**](https://signature.signifyhr.co.za/books/people-management-d8c/page/give-and-receive-kudos "Give and Receive Kudos") and [**Career and Succession Planning**](https://signature.signifyhr.co.za/books/career-and-succession-planning "Career and Succession Planning").

By integrating these modules, organisations can create a seamless and strategic approach to talent management, ensuring employees are supported at every stage of their journey.

![Signify Modules.png](https://signature.signifyhr.co.za/uploads/images/gallery/2025-02/G7FuD0MdVyq1rFzN-signify-modules.png)

![Signify Footer.png](https://signature.signifyhr.co.za/uploads/images/gallery/2025-02/ZOt8yZwhbiGx2d6U-signify-footer.png)

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# Glossary

![Signify Header.png](https://signature.signifyhr.co.za/uploads/images/gallery/2025-02/emW3hfMrZ1yIDMUv-signify-header.png)

##### Action Plan

An action plan in a performance evaluation outlines specific steps an [employee](https://signature.signifyhr.co.za/link/2144#bkmrk-these-terms-are-used) needs to take to improve their performance, develop new skills, or achieve set goals. It includes clear [objectives](https://signature.signifyhr.co.za/link/2144#bkmrk-an-objective-is-a-sp), timelines, measurable outcomes, and any required support or resources. The plan is typically created collaboratively between the [employee](https://signature.signifyhr.co.za/link/2144#bkmrk-these-terms-are-used) and their [manager](https://signature.signifyhr.co.za/link/2144#bkmrk-manager-%2F-performanc), ensuring alignment with organisational expectations and professional growth. Regular [check-ins](https://signature.signifyhr.co.za/link/2144#bkmrk-%C2%A0) and progress reviews help track improvements and adjust the plan as needed.

##### Check-In

A check-in is a functionality that enables [managers](https://signature.signifyhr.co.za/link/2144#bkmrk-manager-%2F-performanc) to conduct regular progress reviews on an [employee](https://signature.signifyhr.co.za/link/2144#bkmrk-these-terms-are-used)’s [performance agreement](https://signature.signifyhr.co.za/link/2144#bkmrk-a-performance-agreem) [objectives](https://signature.signifyhr.co.za/link/2144#bkmrk-an-objective-is-a-sp) between formal [review periods](https://signature.signifyhr.co.za/link/2144#bkmrk-review-period). It allows [managers](https://signature.signifyhr.co.za/link/2144#bkmrk-manager-%2F-performanc) to provide direction, offer guidance, and keep [employees](https://signature.signifyhr.co.za/link/2144#bkmrk-these-terms-are-used) focused on their [objectives](https://signature.signifyhr.co.za/link/2144#bkmrk-an-objective-is-a-sp). Additionally, check-ins facilitate [employee](https://signature.signifyhr.co.za/link/2144#bkmrk-these-terms-are-used) feedback on the support and guidance received, fostering continuous communication and alignment.

##### Company Values and Behaviours

Company values and behaviours define the expected conduct within an organisation. By identifying and explicitly communicating these values and behaviours, companies shape their culture, establish a moral compass for [employees](https://signature.signifyhr.co.za/link/2144#bkmrk-these-terms-are-used), and create a foundation for consistent decision-making. They also serve as guidelines for internal processes and performance measurement. [Employees](https://signature.signifyhr.co.za/link/2144#bkmrk-these-terms-are-used) are assessed against these values as part of their performance management process, and they automatically form part of each [employee’s](https://signature.signifyhr.co.za/link/2144#bkmrk-these-terms-are-used) [performance agreement](https://signature.signifyhr.co.za/link/2144#bkmrk-a-performance-agreem).

##### Employee, User, Learner, or Person

These terms are used interchangeably within the system to refer to individuals interacting with it. The term "person" or "user" generally refers to those engaging with the system in a non-administrative or non-managerial capacity. If the context is related to **Learning Management**, "learner" is preferred. In a manager-subordinate environment, such as **Performance Management**, "employee" is typically used. The appropriate term depends on the specific module and its functionality.

##### Key Competencies  


Key competencies refer to the essential skills, abilities, and attributes required for success in a specific job or organisation. These competencies are often used in the rating process to assess [employee](https://signature.signifyhr.co.za/link/2144#bkmrk-these-terms-are-used) performance. Within the system, competencies can be defined for each job and made available in the **Performance Management** module.

##### Key Performance Area (KPA)

Key Performance Areas are the specific business areas for which an individual is responsible, such as process improvement, safety and health, and security. Each KPA is further defined by one or more [Key Performance Indicators (KPI)](https://signature.signifyhr.co.za/link/2144#bkmrk-key-performance-indi), which measure performance within that area. KPA weights within a [Perspective](https://signature.signifyhr.co.za/Perspectives%20https:/signature.signifyhr.co.za/link/2144#bkmrk-perspectives%2C-also-k%20%20%20Perspectives,%20also%20known%20as%20pillars,%20are%20categories%20used%20to%20group%20Key%20Performance%20Areas%20(KPAs)%20and%20are%20derived%20from%20the%20Balanced%20Scorecard%20approach%20to%20performance%20management.%20Common%20examples%20include%20the%20Financial%20Perspective,%20Customer%20Perspective,%20Internal%20Process%20Perspective,%20and%20Learning%20and%20Growth%20Perspective.%20Each%20perspective%20provides%20a%20structured%20way%20to%20evaluate%20performance%20across%20different%20business%20areas.%20Note%20that%20perspective%20weights%20within%20a%20section%20must%20always%20total%20100%.) must always total 100%. For further details, refer to [Key Performance Indicator (KPI)](https://signature.signifyhr.co.za/link/2144#bkmrk-key-performance-indi).

##### Key Performance Indicator (KPI)  


Key Performance Indicators are measurable values that assess progress towards strategic goals or [objectives](https://signature.signifyhr.co.za/link/2144#bkmrk-an-objective-is-a-sp). An effective KPI is well-defined, quantifiable, and essential for achieving specific targets. KPI weights within a [Key Performance Area (KPA)](https://signature.signifyhr.co.za/link/2144#bkmrk-%C2%A0-1) must always total 100%.

##### Leadership Behaviours  


Leadership behaviours are performance [objectives](https://signature.signifyhr.co.za/link/2144#bkmrk-an-objective-is-a-sp) applicable only to [employees](https://signature.signifyhr.co.za/link/2144#bkmrk-these-terms-are-used) in leadership positions, where they have direct reports. If an [employee](https://signature.signifyhr.co.za/link/2144#bkmrk-these-terms-are-used) is not a [manager](https://signature.signifyhr.co.za/link/2144#bkmrk-manager-%2F-performanc), this section will be unavailable, and its weight will be redistributed proportionally among the remaining sections.

##### Manager, Performance Manager, or Line Manager  


A manager, in the context of the system, is an individual with direct reports. Organisationally, this role may be referred to as a line manager. Within the **Performance Management** module, a manager is known as a performance manager, while in the **Learning Management** module, the role may be identified as a training manager. Depending on the organisation, these roles may be held by the same person or different individuals. To determine who fulfils each role, refer to an [employee's](https://signature.signifyhr.co.za/link/2144#bkmrk-these-terms-are-used) reporting lines. The terms manager, performance manager, and line manager are used interchangeably.

##### Objective

An objective is a specific goal that an [employee](https://signature.signifyhr.co.za/link/2144#bkmrk-these-terms-are-used) is expected to achieve. In Signify, the term "objective" encompasses various performance elements, including a [Key Performance Area's (KPA)](https://signature.signifyhr.co.za/link/2144#bkmrk-%C2%A0-1) [Key Performance Indicator (KPI)](https://signature.signifyhr.co.za/link/2144#bkmrk-key-performance-indi), a [Stretch Target's KPI](https://signature.signifyhr.co.za/link/2144#bkmrk-this-section-can-be-), a [Company Value](https://signature.signifyhr.co.za/link/2144#bkmrk-company-values-and-b), a [Leadership Behaviour](https://signature.signifyhr.co.za/link/2144#bkmrk-leadership-behaviour-1), and a [Key Competency](https://signature.signifyhr.co.za/link/2144#bkmrk-key-competencies-ref). These objectives define performance expectations for an [employee](https://signature.signifyhr.co.za/link/2144#bkmrk-these-terms-are-used) over a given [performance year](https://signature.signifyhr.co.za/Performance%20Year%20https:/signature.signifyhr.co.za/link/2144#bkmrk-%C2%A0-2%20%20%20A%20performance%20year,%20also%20known%20as%20a%20performance%20cycle,%20typically%20spans%2012%20months.%20It%20may%20align%20with%20the%20calendar%20year%20(January%20to%20December)%20or%20follow%20a%20different%20schedule,%20such%20as%20the%20financial%20year%20(March%20to%20February%20of%20the%20following%20year).%20Organisations%20often%20determine%20their%20performance%20cycle%20based%20on%20factors%20such%20as%20salary%20review%20periods%20and%20business%20planning%20needs.) and serve as the basis for assessment and measurement.

##### People Group

A people group is a defined selection of individuals based on specific criteria, such as their position in the organisational structure, reporting line, location, or other conditions. Individuals within a people group have access to certain system functionalities, including selected eLearning courses, events, or specific processes.

##### Performance Agreement

A performance agreement consists of a person’s [objectives](https://signature.signifyhr.co.za/link/2144#bkmrk-an-objective-is-a-sp), structured across one or more [review periods](https://signature.signifyhr.co.za/link/2144#bkmrk-review-period) (also called assessment periods). The agreement provides a comprehensive framework for assessing the person's performance, with [review periods](https://signature.signifyhr.co.za/link/2144#bkmrk-review-period) typically weighted to contribute to the final score. The performance agreement forms the foundation of performance evaluation and ensures a structured approach to measuring and developing [employee](https://signature.signifyhr.co.za/link/2144#bkmrk-these-terms-are-used) contributions. Additional components, such as a [360° evaluation](https://signature.signifyhr.co.za/link/2144#bkmrk-review-survey) or a [value survey](https://signature.signifyhr.co.za/link/2144#bkmrk-review-survey), can also be included alongside the [objectives](https://signature.signifyhr.co.za/link/2144#bkmrk-an-objective-is-a-sp).

##### Performance Year  


A performance year, also known as a performance cycle, typically spans 12 months. It may align with the calendar year (January to December) or follow a different schedule, such as the financial year (March to February of the following year). Organisations often determine their performance cycle based on factors such as salary review periods and business planning needs.

##### Perspectives

Perspectives, also known as pillars, are categories used to group [Key Performance Areas (KPAs)](https://signature.signifyhr.co.za/link/2144#bkmrk-%C2%A0-1) and are derived from the Balanced Scorecard approach to performance management. Common examples include the Financial Perspective, Customer Perspective, Internal Process Perspective, and Learning and Growth Perspective. Each perspective provides a structured way to evaluate performance across different business areas. Note that perspective weights within a section must always total 100%.

##### Rating / Rating Scale / Score

A rating, rating scale, or score is used to assess an [employee’s](https://signature.signifyhr.co.za/link/2144#bkmrk-these-terms-are-used) performance against agreed [objectives](https://signature.signifyhr.co.za/link/2144#bkmrk-an-objective-is-a-sp). At the start of a [performance year](https://signature.signifyhr.co.za/Performance%20Year%20https:/signature.signifyhr.co.za/link/2144#bkmrk-%C2%A0-2%20%20%20A%20performance%20year,%20also%20known%20as%20a%20performance%20cycle,%20typically%20spans%2012%20months.%20It%20may%20align%20with%20the%20calendar%20year%20(January%20to%20December)%20or%20follow%20a%20different%20schedule,%20such%20as%20the%20financial%20year%20(March%20to%20February%20of%20the%20following%20year).%20Organisations%20often%20determine%20their%20performance%20cycle%20based%20on%20factors%20such%20as%20salary%20review%20periods%20and%20business%20planning%20needs.), the [manager](https://signature.signifyhr.co.za/link/2144#bkmrk-manager-%2F-performanc) and [employee](https://signature.signifyhr.co.za/link/2144#bkmrk-these-terms-are-used) define these [objectives](https://signature.signifyhr.co.za/link/2144#bkmrk-an-objective-is-a-sp). At the end of each review or assessment period, of which there may be one or more in a year, the [employee](https://signature.signifyhr.co.za/link/2144#bkmrk-these-terms-are-used) provides a personal rating for each [objective](https://signature.signifyhr.co.za/link/2144#bkmrk-an-objective-is-a-sp). This rating is only visible to the [manager](https://signature.signifyhr.co.za/link/2144#bkmrk-manager-%2F-performanc) once submitted. Similarly, the [manager](https://signature.signifyhr.co.za/link/2144#bkmrk-manager-%2F-performanc) assigns a rating for each [objective](https://signature.signifyhr.co.za/link/2144#bkmrk-an-objective-is-a-sp), which is not immediately visible to the [employee](https://signature.signifyhr.co.za/link/2144#bkmrk-these-terms-are-used). These ratings contribute to the overall performance evaluation process.

##### Review Period

A review period is a designated timeframe within a performance cycle during which an [employee's](https://signature.signifyhr.co.za/link/2144#bkmrk-these-terms-are-used) [objectives](https://signature.signifyhr.co.za/link/2144#bkmrk-an-objective-is-a-sp), as outlined in their [performance agreement](https://signature.signifyhr.co.za/link/2144#bkmrk-a-performance-agreem), are assessed. There may be one or multiple review periods within a [performance year](https://signature.signifyhr.co.za/Performance%20Year%20https:/signature.signifyhr.co.za/link/2144#bkmrk-%C2%A0-2%20%20%20A%20performance%20year,%20also%20known%20as%20a%20performance%20cycle,%20typically%20spans%2012%20months.%20It%20may%20align%20with%20the%20calendar%20year%20(January%20to%20December)%20or%20follow%20a%20different%20schedule,%20such%20as%20the%20financial%20year%20(March%20to%20February%20of%20the%20following%20year).%20Organisations%20often%20determine%20their%20performance%20cycle%20based%20on%20factors%20such%20as%20salary%20review%20periods%20and%20business%20planning%20needs.). The review period provides structured opportunities for evaluating progress and performance.

##### Review Setup

A review setup defines the structure and rules governing the performance review process within an organisation. It determines how [performance agreements](https://signature.signifyhr.co.za/link/2144#bkmrk-a-performance-agreem) function, specifying rating permissions, the level of the [employee's](https://signature.signifyhr.co.za/link/2144#bkmrk-these-terms-are-used) involvement, and approval workflows. For examples of different review setups, please see [Tips and Use Cases](https://signature.signifyhr.co.za/books/performance-management-sq2/chapter/chapter-5-tips-and-use-cases "Chapter 5: Tips and Use Cases").

##### Review Survey

A review survey in a performance evaluation is a structured questionnaire used to gather feedback on an [employee's](https://signature.signifyhr.co.za/link/2144#bkmrk-these-terms-are-used) performance, skills, and contributions. It may include [ratings](https://signature.signifyhr.co.za/link/2144#bkmrk-rating-%2F-rating-scal), open-ended questions, and competency assessments from various sources, such as the [employee](https://signature.signifyhr.co.za/link/2144#bkmrk-these-terms-are-used), their [manager](https://signature.signifyhr.co.za/link/2144#bkmrk-manager-%2F-performanc), peers, or subordinates. The survey helps identify strengths, areas for improvement, and overall job effectiveness.

##### Stretch Target

A stretch target, also known as a stretch goal, is an [objective](https://signature.signifyhr.co.za/link/2144#bkmrk-an-objective-is-a-sp) within the **Performance Management** module that functions similarly to a [Key Performance Area (KPA)](https://signature.signifyhr.co.za/link/2144#bkmrk-%C2%A0-1) [objective](https://signature.signifyhr.co.za/link/2144#bkmrk-an-objective-is-a-sp) but is typically intended to drive additional growth or challenge an [employee](https://signature.signifyhr.co.za/link/2144#bkmrk-these-terms-are-used) beyond standard expectations. This section can be customised using system aliases and renamed to suit organisational needs. For example, some companies have renamed this section to **Personal Development Plan** to incorporate training initiatives into [employees'](https://signature.signifyhr.co.za/link/2144#bkmrk-these-terms-are-used) [performance agreements](https://signature.signifyhr.co.za/link/2144#bkmrk-a-performance-agreem).


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