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


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