Performance management is how organisations help people do their best work and align it to goals — done well, it's supportive and developmental, not just an annual rating.
What good performance management looks like
- Clear objectives — SMART goals linked to team and business priorities, agreed not imposed.
- Regular feedback & check-ins — frequent, two-way conversations rather than a single annual review.
- Development focus — connecting performance to learning and growth.
- Recognition — valuing good work.
- Fair handling of underperformance — supportive, evidence-based and consistent.
Setting objectives
Use SMART (Specific, Measurable, Achievable, Relevant, Time-bound) and connect each objective to what the team and organisation are trying to achieve, so people see how their work matters.
Giving effective feedback
Good feedback is timely, specific and behaviour-focused. Models like SBI (Situation–Behaviour–Impact) keep it factual and fair. Balance recognition with development, make it two-way, and focus on what to do next — not just what went wrong.
Appraisals / reviews
An appraisal reviews performance against objectives, recognises achievements, discusses development, and sets new goals. It should hold no surprises if regular feedback is happening. Modern practice favours continuous conversations over relying on one annual event.
Handling underperformance fairly
Where someone is underperforming: understand the cause (skill, will, clarity, health, circumstances?), be clear and specific about the gap, provide support and a reasonable improvement plan (PIP) with time to improve, and follow a fair process. Distinguish capability (can't) from conduct (won't) — they're handled differently. Avoid jumping to formal steps without support and clarity.
Avoiding common pitfalls
Vague objectives, feedback only when things go wrong, recency and rating bias, and 'once-a-year' management. Consistency and fairness across a team matter — and are watched closely.
Put it to work
Turn a vague goal ('be more proactive') into a SMART objective, and draft SBI feedback for it. Then run a real performance scenario in the HR Simulations.