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: Employee Relations and Engagement Adviser

Jonny is a Research Adviser at the CIPD, specialising in employee relations and engagement, other interests include CSR, diversity, leadership and organisational development. He has had a varied career in researching employment and people management issues

Prior to joining CIPD in 2012, he was Principal Researcher at Roffey Park Institute and before that, Research Fellow at the Institute for Employment Studies (IES). Jonny has an MA in Social Research and Comparative Labour Studies from Warwick University and a BA in Social Anthropology from Sussex University.

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