Discuss the steps involved in the performance management process.

The first two steps of the process involve identifying what the company is trying to accomplish (its goals or objectives) and developing employee goals and actions to achieve these outcomes. Typically, the outcomes benefit customers, the employee's peers or team members, and the organization itself. The goals, behaviors, and activities should be measurable and become part of the employee's job description.
Step three in the process-organizational support-involves providing employees with training, necessary resources and tools, and ongoing feedback between the employee and manager, which focuses on accomplishments as well as issues and challenges that influence performance. For effective performance management, both the manager and the employee have to value feedback and exchange it on a regular basis-not just once or twice a year. Also, the manager needs to make time to provide ongoing feedback to the employee and learn how to give and receive it.
Step four involves evaluating performance; that is, when the manager and employee discuss and compare targeted goals and supporting behavior with actual results. This step includes the annual formal performance review.
The final steps of the performance management process involve both the employee and manager identifying what the employee can do to capitalize on performance strengths and address weaknesses (step 5) and providing consequences for achieving (or failing to achieve) performance outcomes, such as pay increases, bonuses, or action plans (step 6). This includes identifying training needs; adjusting the type or frequency of feedback the manager provides to the employee; clarifying, adjusting, or modifying performance outcomes; and discussing behaviors or activities that need improvement.