Performance Management

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Definition of 'Performance Management'

Performance management is a process that helps organizations achieve their goals by aligning employee performance with organizational strategy. It involves setting clear goals, measuring performance against those goals, and providing feedback to employees on how they can improve.

Performance management is important for a number of reasons. First, it helps organizations to ensure that they are using their resources effectively and efficiently. Second, it helps to motivate employees and improve their performance. Third, it helps to create a culture of accountability and transparency.

There are a number of different approaches to performance management. Some of the most common include:

* **Goal-setting:** This approach involves setting clear goals for employees and then measuring their performance against those goals.
* **360-degree feedback:** This approach involves collecting feedback on employees from their managers, peers, and subordinates.
* **Coaching:** This approach involves providing employees with feedback and guidance on how they can improve their performance.

Performance management is a continuous process that should be ongoing throughout the year. It is important to regularly review employee performance and provide feedback so that employees can make improvements.

Here are some tips for effective performance management:

* Set clear goals that are aligned with organizational strategy.
* Make sure that employees understand their goals and how they can achieve them.
* Collect feedback on employee performance from a variety of sources.
* Provide employees with feedback in a timely and constructive manner.
* Offer employees opportunities to improve their performance.
* Celebrate employee successes.

Performance management is an important tool for improving employee performance and achieving organizational goals. By following these tips, you can create a performance management system that is effective and efficient.

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