Employee Performance Management is a holistic process of people management, where the primary objective is to establish a culture wherein individuals and groups take responsibility in meeting the organizational goals by utilizing their skill set. In simple words, employee performance management is establishing a shared understanding about what is to be achieved and how it has to be achieved.

The Employee Performance Management Process Model basically has 4 steps.

A good performance management process or the system works towards the improvement of the overall organizational performance by managing the performances of teams and individual employees to ensure the achievement of the of the overall organizational ambitions and goals.