What is the term for the process of setting goals for employees and monitoring their performance?

The process of setting goals for employees and monitoring their performance is known as Performance Management. This concept goes beyond just evaluating employees; it encompasses a continuous cycle of setting clear and achievable objectives, providing necessary resources and support, assessing performance against those goals, and giving feedback throughout the year. This holistic approach ensures that employees are aligned with the organization’s objectives while also fostering their professional development.

Performance management is crucial as it encourages ongoing communication between employees and managers, enhancing engagement and motivation. It also helps identify areas for improvement and provides a framework for professional growth through training or new opportunities. In contrast, terms like appraisal or employee evaluation typically refer to periodic assessments rather than the comprehensive and ongoing nature of performance management.