What Are The Components of A Performance Management System?

Many people mistake performance appraisal for performance management. Actually, performance management is a much bigger system, and is much more valuable to managers and companies (and employees) than performance appraisal. The essential

components or parts of an effective performance management system include:

• Performance Planning (includes employee goal setting / objective setting)
• Ongoing Performance Communication
• Data Gathering, Observation and Documentation
• Performance Appraisal Meetings
• Performance Diagnosis and Coaching