Future of Work Glossary

TABLE OF CONTENT

Performance Management

Category
People analytics & strategy
Also seen as:
Performance review, evaluation system, appraisal

What is performance management?

Performance management is the continuous process of setting expectations, monitoring progress, and supporting employee development to improve results over time.

It’s not a once-a-year event—it’s an ongoing system.

Why performance management matters

Without it, employees lack direction, feedback becomes inconsistent, and underperformance goes unaddressed until it becomes a bigger issue.

Strong performance management creates clarity and accountability.

Core components of performance management

Goal setting, continuous feedback, performance reviews, and development planning all work together to support employee success.

It connects individual performance to business outcomes.

Modern performance management approaches

Companies are moving away from annual reviews toward continuous feedback models with regular check-ins and real-time coaching.

The focus is shifting from evaluation to development.

The business impact of performance management

Higher productivity, stronger alignment with company goals, and improved employee engagement.

Example

A company replaces annual reviews with monthly check-ins. Managers address issues earlier, and team performance becomes more consistent.