Stages of the Performance Management System

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    • Organizations use performance systems to create a high-performance work the office image by Cliff Lloyd from

      Performance management is a method to improve an organization's ability to accomplish the organization's goals and mission. The system entails communicating the goals and objectives and ensuring individuals are accountable. This is accomplished by tracking and evaluating individuals and the overall organization to consistently evaluate and improve performance. There are five basic ways that performance management is accomplished, according to the U.S. Department of Commerce. "Performance Planning, Monitoring Employee Performance, Employee Development, Evaluating Employee Performance, Recognition." (ref 1)

    Performance Planning

    • An employee's performance expectations are established by setting goals. The employee then has a clear understanding of the objectives of the organization, and the established standards will allow the employee and company to measure his or her performance. (ref 1)

    Monitoring Performance

    • When employees have been given the performance plan and understand the requirements, they are monitored and evaluated on their progress for meeting the plan. Projects should be monitored continually by management with ongoing communication with the employees about their progress. (ref 1)


    • Employees may wish to develop skills beyond the scope of their current plan or learn skills for advancement. Management works with employees to identify weaknesses, and strengths, and works with the employees to succeed at their current role or develop skills for future roles. (ref 1)

    Evaluating Performance

    • At times set by the organization, management will perform an evaluation of the employee in line with all aspects of the performance plan. Typically, a rating is given to document the employee's overall ability to perform the job function. (ref 1)


    • Rewarding employees for meeting or exceeding performance goals is an important aspect of a performance management system. The types of rewards vary depending on the organization. Cash awards, gift cards or similar appreciation can be given or there can be honor awards such as recognition documents. (ref 1)

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