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Performance Management Process Components

Performance Management Process Components

Performance management refers to the communication process through which managers and employees collaborate to plan, monitor, and review employees’ job objectives and their alignment with organizational goals. There is more to performance management than the annual employee performance review meeting. The process includes planning, coaching, providing performance feedback, and codes of conduct. These components make up the components of performance management.


The planning phase of performance management includes ascertaining whether an employee’s qualifications align with the demands of the assigned work. Subsequently, the management, in collaboration with the employees, set SMART goals. SMART goals include the day-to-day employee tasks that take time, even though they are not significant accomplishments (Aguinis, 2009). By setting SMART goals, employees can tell if their day-to-day activities help them achieve long-term objectives.

Performance Standards

Whereas the goals described above show employees the expectations managers need them to achieve, performance standards tell them how well they should do it. The sub-elements of performance standards include quality, which refers to how accurate and effective the final product is (Aguinis, 2009). Another component of performance standards is quantity, which refers to how much work is produced (Aguinis, 2009). The manager should offer a base quantity objective that employees are expected to achieve. Next is timeliness, which indicates the timeline within which a project is supposed to be completed. The final performance standards element is cost-effectiveness, which aims at increasing savings per unit cost of work.

Performance Feedback

The performance management process places a high premium on offering honest feedback and counselling required for an employee to improve. In simple terms, feedback is the information an employee receives describing how their behaviour affects the workplace (Bae, 2006). Feedback may be based on facts, describing an employee’s behaviour and its consequences, or emotional to show how colleagues react to an individual employee’s behaviour. Managers may provide positive feedback if an employee’s performance exceeds expectations. However, constructive and honest feedback will come in handy if one performs below expectations (Wingrove, 2021). Providing constructive feedback will help employees rectify their behaviour before escalating into a significant problem.


Aguinis, H. (2009). Performance management. Upper Saddle River, NJ: Pearson Prentice Hall.

Bae, E. K. (2006). Major Elements and Issues in Performance Management System: A Literature Review. Online Submission.

Wingrove, C. (2021, February 23). Seven critical components of new performance management. People Matters.


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Performance Management Process Components

Performance Management Process Components

Identify the essential components of a PM process.
In response to your peers, include additional information that you deem critical for the components in the PM process.

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