Performance management is strategic as well as operational, as its aim is to ensure that employees contribute positively to business objectives. Ideally, performance should be managed holistically, throughout the range of HR activities and processes.

This factsheet explores some of the key tools that can enable effective performance management, including appraisals or reviews, 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


Useful contacts and further reading

This factsheet was last updated by Jonny Gifford.

Jonny Gifford

Jonny Gifford: Organisational Behaviour Adviser

Jonny is the CIPD’s Adviser for Organisational Behaviour. He has had a varied career in researching employment and people management issues, working at the Institute for Employment Studies and Roffey Park Institute before joining the CIPD in 2012. A central focus in his work is applying behavioural science insights to core aspects of people management. Recently he has led programmes of work doing this in the areas of recruitment, reward and performance management. 

Jonny is also committed to helping HR practitioners make better use of evidence to make better decisions. He runs the CIPD Applied Research Conference, which exists to strengthen links between academic research and HR practice. 

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