Performance management at its best is a strategic and holistic process which runs throughout the entirety of HR activities and processes, ensuring employees’ performances contribute positively to business objectives. There is no one-size-fits-all approach to performance management. Care needs to be taken to ensure that organisational context, strategic goals and culture are fully considered when developing performance management strategies and practices.

This factsheet explores some of the key tools that can enable effective performance management, including performance appraisals, 360 degree feedback, learning and development, objectives and performance standards, and the measurement of performance. It also looks at performance-related pay and the arguments for and against linking levels of pay to individual, team and organisational performance.

CIPD viewpoint

What is performance management?

How does performance management work?

Tools of performance management

Performance management and retirement in the UK


Further reading

This factsheet was last updated by CIPD staff.