Employee Performance Management: What is it?

Employee Performance Management includes a process for setting up a shared workforce understanding about what’s to be accomplished at an organizational level. It’s all about aligning the organizational goals with the workers’ agreed skills, measures, development plans, competency requirements, and delivery of results. The focus is on learning, improvement, and development to accomplish the overall business plan and develope a high performance workforce.

Performance Management History

Performance Management started about sixty years ago as an income source justification and was utilized to decide a worker’s wage based upon performance. Organizations utilized Performance Management in order to drive behaviors from the workers to obtain certain results. In practice it worked well for specific workers who were only driven by financial rewards. But, where workers were driven by development of their skills and learning, it failed. The gap in between justification of pay and development of knowledge and skills became a big issue in using Performance Management.

However, in recent times, the process of managing individuals has become more specialized and formalized. Most of the old performance appraisal techniques have been absorbed to the idea of Performance Management that has a goal of being a more comprehensive and extensive management process. A few of the developments which have shaped Performance Management within recent years include the differentiation of workers or talent management, management by goals and frequent reviews and monitoring. Its development was accelerated by these factors:

  1. Introduction of HR management as a strategic driver as well as integrated approach to the development and management of workers; and
  2. Understanding that the Performance Management process is something which is done by line managers all throughout the year – it isn’t a once off yearly event that is coordinated by a personnel department.

For more information on Employee Performance Management contact Engagedly at (650) 485-1642.


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