Performance Management definition
Performance management is a process of linked activities that aim to ensure goals are being met in the most efficient and productive way possible. Within organisations, performance management attempts to drive efficiency of operations by aligning internal and external activities with the company’s objectives.
Some of the cited benefits of performance management include improvements to the bottom line, including a reduction in project overruns and a reduction in costs through improved process efficiency. Employee engagement may also improve due to the realignment of goals within teams, and with the overall corporate vision.
Michael Armstrong and Angela Baron defined performance management as a “strategic and integrated approach to increase the effectiveness of companies by improving the performance of the people who work in them and by developing the capabilities of teams and individual contributors.”