Function

• A performance management system is designed to promote interaction and feedback between management and employees, establish expectations for individual work performance, and serve as a foundation for rewarding top employees.
  
  

Features

• Performance management systems require a structured method of communication between various levels of an organization. Companies that require and promote this feedback loop can learn and grow from the information acquired.
  
  

Types

• Performance management systems may involve direct employee and supervisor input as well as observational techniques or skills testing.
  
  

Identification

• A performance management system is usually comprised of periodic conversations between an employee and his manager to set and review goals, discuss problem areas, and recognize achievements. These mandatory interactions ensure employees have a forum to ask questions or voice concerns.
  
  

Considerations

• An organization that does not properly implement and support a performance management system may not experience all of the possible benefits of increased communication and workforce development.