How is this different than conducting an annual employee review?

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An annual employee review could definitely be part of performance management, but it’s not the whole enchilada. Performance Management deals with not only individual employees, but with how the company as a whole is shaping up. This includes everything from departments, groups, and teams to programs, products, projects, and processes. Performance management measures whether each of these systems or groups is working well within a company to meet an overall results-oriented goal.

Performance management will address how each person, group, team, department, or even individual company within a corporation are working to meet the overall organizational goals. They’ll want to find out whether everyone and every system is working at its most efficient pace; producing the most products or serving the most people or companies possible; and whether those services or products are being produced at a high level of quality to meet client/consumer/customer needs.

It’s not enough for a company to have friendly employees with good work ethics and positive attitudes. Without producing results, there’s no need for the company to be in business.



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