What is performance management?

• A. Hiring and firing staff
• B. The process of getting the most out of employees and ensuring they perform their role in an effective manner so organisational goals are achieved
• C. Designing office layouts
• D. Calculating payroll taxes

Answer: (B)

Performance management is the ongoing process of improving and aligning employees’ performance with the organisation’s goals. It focuses on getting the most out of people by setting clear expectations, providing regular feedback and coaching, identifying development needs, and ensuring individuals have the skills, resources, and motivation to perform effectively. When done well, it ensures individual efforts contribute to organisational objectives and addresses gaps through training, support, and adjustments as needed. This goes beyond simply hiring or firing, designing office layouts, or calculating payroll taxes, which are separate activities. For example, a manager sets specific targets, tracks progress with measurements, offers feedback, arranges relevant training, and links rewards to achievement to drive both personal and organisational success.