Performance management refers to the range of company processes enacted in service of predetermined strategic business objectives. Performance management is a varied term, as companies have strategies and objectives specific to their organization – a simplified performance management definition is as follows: the strategic activities associated with the management of a company’s performance.
Companies utilize performance management strategies in different forms. Processes may be applied to monitor and track employee and company-wide performance on a simple or complex scale. At the very least, employee performance reviews are commonly given in order to push performance in a desired direction, though frequency may vary greatly between companies.
The term has taken on specific meaning in reference to emerging performance management software, available to businesses of any size. Performance management software is a more robust and effective solution to company performance monitoring and tracking, providing a system in which early and personalized feedback is given to employees in service of goals set by the company over a specified period of time.