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What Is Continuous Performance Management?

A performance is a detailed activity or act of presenting or staging a theatrical play, musical, or other type of performance. It is also commonly defined as the act or procedure of achieving or performing an objective or task. In its most general sense, performance can be considered a process, and the processes that support it can be viewed as stages.


Stages in performance management are the processes by which an individual’s performance meets his or her objectives. The planning and development stage is the stage in which strategic plans for the achievement of objectives are developed. This stage is critical because it enables a company to define clearly its goals and plan accordingly. There is not a fixed format in which objectives should be presented, however, most organizations follow the standard format of presenting objectives. Objectives then become the focus of the development and implementation stage.

The implementation stage is very important because this is where performance against the defined goals is measured. Performance against the defined goals provides a basis for the long-term success or failure of the company. The success or failure of a company largely depends on how well employees and managers fulfill the company’s objectives. Long-term performance against the set objectives therefore determines the future success or failure of the company.


Performance appraisals provide information about employees’ behaviors and performance. Performance appraisals are based on the five elements – behavior, objectives, knowledge, attitude, and capability – that are used to evaluate people as determined by the organizational structure. The elements of behavior are the internal attitudes of employees toward their tasks, their work environment, and their supervisors. The objectives of performance appraisals are goals that employees must meet individually and in teamwork.

Knowledge, on the other hand, pertains to how employees understand what they do. Attitude and capability refer to the strengths and weaknesses of an individual or a group in their capacity to perform according to defined objectives. In performance management, these three factors have been combined to create performance objectives. Once the objectives are known, they can then be evaluated on whether they have been met improved, modified, or abandoned.


Continuous performance management systems not only help managers in their day-to-day activities, but they also help improve employee productivity. The use of performance management systems is recommended to all types of organizations. For instance, an automobile manufacturer should establish an effective performance management system if it wants to maximize its profits. On the other hand, an employee who is responsible for product development should also create and maintain an effective performance management system to ensure the success of his job.

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