The State of Kansas (2008) defines the Performance Review process as an overall assessment of an employee's annual performance.[1]
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During this process, managers and employees would discuss employees’ ratings, as well as managers’ rationale for their evaluations. In some organizations, managers may also discuss administrative affairs, such as salary allocation and/or promotion decisions, with their employees.

​Once managers have identified and evaluated their employees’ key competencies, managers and employees should exchange feedback on a continuous basis.

​During this process, managers are responsible for providing constructive, honest and relevant feedback. Correspondingly, employees are encouraged to use their supervisors’ feedback to improve their performance. [1]

Once organisational goals are established, supervisors should identify their employees’ key competencies. In order to ensure that performance evaluations are effectively conducted, supervisors also should specify how expectations may differ according to an employee’s position.

​This procedure would inform employees about the responsibilities that are associated with their respective positions, and would establish a set of reasonable expectations for supervisors to assess their employees with. [1]

The State of Kansas (2008) lists the Performance Planning process as the first step in a performance management system. It defines Performance Planning as the establishment of an organisation’s performance objectives for the following year. [1]

​At the beginning of each performance management cycle, managers should establish strategic objectives for their division to achieve. You may refer to our previous article on strategic direction for more tips on establishing relevant objectives. 

An organisation's performance management system should be aligned with its fundamental objectives, as well as its culture and values. [1] In this article, we'll discuss the key characteristics of effective performance management systems.

Once an organisation has defined their corporate objectives, as well as a specific set of KPIs, its managers should establish a performance management system to drive their employees towards strategic goals.

Performance management systems allow organisations to establish a working environment that maximises employee performance. With an emphasis on leadership and development, effective performance management models empower employees to achieve the organisation’s objectives. [1]