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  • Dr. Tom Siebenaler

People Development Easy Explained 3/6: What is Performance Management?


Employees are often confronted with the fact that their (above-average) performance is not visible or that there is a strong imbalance within the own team. Often talented employees experience a high level of dissatisfaction in case their accomplishments are not recognized by their own manager or within the organization.

  • How is performance measured in an organization?

  • What is the ratio between low and high performers?

  • How can employees be encouraged to perform better?

  • Which performance culture is needed to achieve organizational goals?

A performance management system consisting of goal agreements, regular feedback sessions, and a performance appraisal system ensures ongoing communication between employees and managers.


Performance Management aims at fully developing the potential of employees and enabling above-average performance


What characterizes a successful performance management?


Developing and optimizing an integrated performance management system includes the following points:

  • Development and implementation of an annual performance cycle

  • Implementation of modern concepts for measuring and evaluating performance

  • Creation of guidelines and forms

  • Planning, implementation and support of performance appraisals including the use of target agreements

  • Creation of trainings for managers

  • Linking performance to compensation structures and development measures

  • Evaluation of incentive systems

  • ...

Performance management processes do not have to be complex. Rather, it all comes down to establishing a performance culture in which the topic of „performance“ is integrated into the daily work of employees and managers alike.


Would you like to learn more about performance management? Seven Trees will be glad to support you in your endeavor.

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