Performance Management (PM) includes activities which ensure that goals are consistently being met in an effective and efficient manner. Performance management can focus on the performance of an organization, a department, employee, or even the processes to build a product of service, as well as many other areas.
PM is also known as a process by which organizations align their resources, systems and employees to strategic objectives and priorities.
Performance management originated as a broad term coined by Dr. Aubrey Daniels in the late 1970s to describe a technology (i.e. science imbedded in applications methods) for managing both behavior and results, two critical elements of what is known as performance. A formal definition of performance management, according to Daniels’ is “a scientifically based, data-oriented management system. It consists of three primary elements-measurement, feedback and positive reinforcement.