Performance Management [2 Marks]

Definition:
Performance Management is a continuous, systematic process of identifying, measuring, developing and aligning employee performance with organizational goals - broader than annual appraisal.

Key Features:

• Scope: Goal setting (KRA/KPI) → Continuous monitoring & feedback → Formal appraisal → Coaching & Development → Reward linkage.
• Difference from Performance Appraisal: Appraisal is a once-a-year event/judgement; Performance Management is ongoing cycle of planning, reviewing and improving.
• Objectives: Improve individual & organizational performance, identify training needs, guide promotions/increments and build a performance culture.

Example: OKR framework or Balanced Scorecard where manager and employee jointly set quarterly targets and review monthly.

Authors: Aguinis - "Performance management is a continuous process of identifying, measuring and developing performance."

Word Count: ~115 words.