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What Is Performance Management?

Performance management is the ongoing cycle of setting expectations, giving feedback and reviewing performance fairly and consistently.

An educational definition from the HR glossary. Explore related terms below, or jump into the resource center to go deeper.

Definition

Performance management is the ongoing cycle of setting expectations, giving feedback and reviewing performance fairly and consistently.

Why it matters

Done well it supports development, engagement and trust; done badly it erodes them.

Examples

Illustrative example. Goals set at the start, frequent feedback, and a structured review form one cycle.

For the practical detail behind this term, follow the related metric, template and resources below.

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For informational purposes only. This is an educational, plain-language definition — not legal, tax, financial or compliance advice and not an official definition. Terms and obligations vary by organisation and jurisdiction. Numeric examples are simple, placeholder-based illustrations, not data. Confirm specifics with qualified professionals.
Related concepts

Related glossary terms

Keep exploring the HR vocabulary.

Glossary

Performance Review

A performance review is a structured conversation that looks back at performance and agrees next goals.

Open Glossary

Feedback

Feedback is specific, timely information about behaviour and its impact, given to help someone improve or continue what works.

Open Glossary

Goal Setting

Goal setting is turning intentions into clear, measurable, time-bound goals with owners and check-ins.

Open
Measure it

Related metrics & calculators

HR metric

Employee Development Metrics

Employee development metrics describe how people grow inside the organisation.

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HR calculators

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HR metrics hub

How HR measures are defined and read.

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Put it into practice

Related templates

Template

Performance Review Template

A fair review is structured, evidence-based and two-way.

Open
Go deeper

Related resources

The clusters that put this concept into practice.

Lifecycle

Employee lifecycle

The full employee journey, stage by stage.

Open Operations

Employer operations

Run the workforce as a repeatable system.

Open Planning

Workforce planning

Strategy and organizational design.

Open Compliance

HR compliance

Documentation, records, data and policy.

Open Templates

HR templates

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Open Playbooks

HR playbooks

Step-by-step plays for people processes.

Open Technology

HR technology

Automation, analytics and systems.

Open Funnel

Recruitment funnel

Sourcing through to accepted offer.

Open Reporting

HR reporting & dashboards

Turn people data into clear views.

Open AI for HR

AI for HR

Where AI assists HR, responsibly.

Open Resource center

HR resource center

The central map of every cluster.

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FAQ

Frequently asked questions

What is Performance Management?

Performance management is the ongoing cycle of setting expectations, giving feedback and reviewing performance fairly and consistently.

Why does Performance Management matter?

Done well it supports development, engagement and trust; done badly it erodes them.

How is Performance Management measured?

It connects to the HR metric linked on this page, where you can find the formula and how to read it. This glossary entry is an educational definition, not a data source.