The process of performance management is vital for every organization seeking to accomplish its strategic objectives. An effective process enables the organzation to align employees with the mission and vision and determine whether they achieve or surpass expectations set by their manager. Other areas in which performance management is important includes training, evaluation of employee’s conduct, as well as salary allocation and promotion.



There are five essential components of effective performance management:



Goal setting
Performance monitoring
Performance development
Performance evaluation
Compensation and recognition


The performance management process starts with developing goals and objectives. The employees should engage with their managers in setting SMARTT objectives which are specific, measurable, achievable, relevant and time bound. The agreed goals should also reflect the goals of the whole organization or company.