Definition - What does Performance Management mean?
Performance management is the processes or activities oriented towards ensuring high performance or making sure that business operations and processes are being done efficiently.
Techopedia explains Performance Management
Performance management can apply to individual workers, teams or processes, or the results of various business IT systems. This term emerged in the 1970s in regards to the application of technology to performance metrics, as well as the analysis of technological performance, in addition to human performance.
Some experts outline various components of performance management including measurement, analysis and application. Through various stages, performance management resources optimize processes and streamline workflows. Various vendors offer performance management tools to companies.
Some of these consider key performance indicators which help to meet concrete objectives. For example, a performance management tool will intake data on concrete benchmarking of processes to make sure that metrics are being accomplished.
This replaces a sometimes more vague process of using a traditional performance evaluation process between a manager and an employee to see if that person is working efficiently.
Adding new technologies and measurements adds to what performance management accomplishes; aside from just making sure that people are doing what they're supposed to and doing it well, they can provide more concrete analysis to boost business processes.
Many of the performance management tools available provide analytics and visual interfaces for tracking and measuring performance. This can be done in many ways, with proprietary systems that companies must choose from to upgrade their performance management process.