Performance management is a leading indicator of future performance. It is not a single event; it is a forward-looking system made up of job descriptions, performance standards, ongoing feedback and advice linked to organizational goals and some type of reward system. Each component of the system is tied to the others, and each is critical to making the process work for the benefit of the organization.

The role of Human Resources (HR) in performance management is facilitative. The HR professional provides the tools, training, and guidance to enable operational management to implement the system. Managers will still need to monitor the formal appraisal process (which is generally part of the ongoing feedback), but the task should result not only in better compliance and less dread, but also improved organizational effectiveness.