What is the Performance Management Process?
Get Started

What is the Performance Management Process?

Performance management is a management style that has grown increasingly popular. It involves a process in which a company, organization, or institution creates a work environment that empowers employees to work to the best of their abilities. The process that an employer uses to accomplish this often varies from one business to the next. Despite these variations, the performance management process generally involves some form of goal setting, evaluation and reward. In addition, coaching is often offered throughout the process.


The planning stage of the performance management process is meant to set achievement goals for the employee and discuss the expected level of performance for the job. The expectations for any given employee will typically depend on the work they are doing or the department they are in. At the end of the planning stage both the employee and management must be in agreement in terms of what is expected. In addition, the goals that are set are ones that should be achieved within the course of one year.


The assessment is an annual evaluation of the employees' performance. This often takes feedback from co-workers and clients into consideration, in addition to observations by management. Assessments also include a review of the previous years' evaluation and an assessment of skills. Some employers may have an employee complete an evaluation of their own performance that is then discussed during the evaluation and compared to the official evaluation.


This portion of the process is about recognizing the employee's accomplishments as well as any areas that need improvement. During this process the manager/employer and the employee should discuss ways to make improvements. Management should also be open to things that they can do differently in efforts to help the employee. In terms of accomplishments, employees may be given recognition verbally and/or in the form of bonuses or promotions.

Career Development

This phase of the process is to promote and encourage future improvement and development of the employee. It should meet the needs of the business or organization, enhance the strengths of the employee and work to eliminate areas of weakness. This may involve training on site as well as sending the individual to off-site training. As with other phases or stages of the process, communication between management and the employee is important.

Performance Management Process Tools & Resources

Click on this link to review the five steps of the performance management process as outlined by the U.S. Department of Commerce Office of the Secretary. The page also includes links to chapters in the handbook.

A PDF document from the University of California, Berkeley that addresses the phases of the performance management cycle, guiding principles, and the role of the supervisor. Other information in this PDF includes 360 degree feedback and tips for development plans and work goals.

An overview of the purpose of the performance management process and why it is needed. The page refers to the university but it may also be applied to any office or business.

This PDF outlines what performance management is and the definition of various performance appraisal ratings. It also provides examples of the ratings and how to determine them.

A fifteen-page PDF document that introduces the processes, provides objectives and outlines each step.

On this page readers will find the objectives of the performance management process and an overview. Review and updating of the position description, performance factors, and employee input are also included on this page. Certain information is specific to Pittsburgh State University, although the basic information may be useful to any employer or management team.

Learn about performance management and its phases by clicking on this link. In addition, readers will also find tips on how to develop an assessment form and also information about the effectiveness of 360-degree feedback.

Readers who click on this link will learn about performance management, why it is important, and what needs to be done. The page also charts the steps that are key to effective performance management.

A step-by-step outline of performance appraisals. The page outlines preparation, assessment, reviewing documents, appropriate setting, delivery, and encouragement.

An overview of the performance management process according to the state of Georgia. Principles and phases are outlined and links to performance planning and coaching tools are included.

An outline of the purpose, benefits and steps involved in performance management.

This page outlines and explains the process of performance management. Planning, monitoring, developing, rating, and rewarding are areas that are reviewed on this page.

By clicking on this link readers open a seven-section PDF guide on the performance management process. The guide includes sections on performance planning, coaching, evaluation, and development.

An overview of the elements involved in the performance management process. The process is illustrated in a drawing, below which readers will find the various stages.

Click this link to review the seven steps of the performance management process on the Health Resources and Services Administration.

This is a training PDF that outlines the performance management process. The document provides explanations and guidance regarding the various steps.

Click this link to review useful tips and hints for performance management. Readers who click this link can also review the process and guidelines as outlined by the University of Missouri.

This is a PDF guide that includes information regarding performance management, including an overview of the eight-step process. Readers will also find a management timeline, feedback and self-assessment processes and tools, and more.