Performance management shifts companies away from backward looking once-a-year reviews to a process that is real-time, continuous and focused on helping people meet goals. Focused on continuous improvement, performance management aims to build a workforce committed to personal and organizational growth.
In practice, performance management represents a series of interventions designed to keep a workforce accountable. For example, monthly, a manager will reflect on each direct-reports progress toward goal and provide guidance. Reflection questions might include “Is the worker at risk for low performance?” and “Is the worker on track to take on more challenging assignments?”
The idea behind performance management is that more intervention is better than less when it comes to driving revenue and profits. It is suggested that with regular coaching, workers have a stronger sense of their organizational role and their career path.