What is Performance Management?

Performance Management is a system that increases efficiencies, decreases costs, and boosts performance of a given industry or, in some specific applications, employees. The effectiveness of the system ranges from specific concepts such as product quality to more broad concepts such as consumer satisfaction. Performance Management systems are used in many companies to evaluate employee performance and determine the amount of any merit compensation that is due to the employee. It kind of takes the fun out of asking for a bonus or raise doesn’t it?