For companies, performance management is a set of methods to enhance strategic execution. It organically combines personal performance, personal development and company goals, and through the continuous improvement of personal performance and team performance, it constantly improves company performance and ensures the implementation of company strategy and the realization of business goals.

For managers at all levels, performance management can help them improve their management level and reduce management pressure. By establishing a top-down, layer-by-layer decomposition target system, each employee can clearly define his work focus, work goals and direction, let employees do the "right thing" in the most effective way, and ensure that their work behavior and work output are consistent with the organization's goals. For employees, performance management helps employees improve their personal performance through performance goal setting, performance coaching and performance feedback, and enhances their personal ability through the implementation of employee promotion plan, thus helping employees realize their personal career development.

Performance management is a process, in which employees form * * * knowledge of what they should achieve and how to achieve it. It is a management method that scientifically and dynamically measures the working efficiency and effect of employees in a certain period of time. It is a process for managers at all levels to clearly understand their subordinates' work performance, business ability and efforts during the assessment period by formulating effective and objective performance measurement standards, and to evaluate their work efficiency and effectiveness.

The core purpose of performance management is to improve the performance of an organization or team by improving the performance level of employees. In the process of performance management, employees have a sense of self-realization by participating in setting their own work goals; Through top-down goal decomposition, prevent the goals of the team and employees from deviating from the organizational goals; Evaluate rewards and punishments many times a year, realize the organization's monitoring and implementation of the objectives, and ensure the timely completion of the work objectives.

Performance management provides a standardized and concise communication platform. Performance management has changed the previous practice of issuing orders and checking results from top to bottom. It requires managers and managed people to communicate, judge, feedback and guide their work behavior and results on a regular basis. Managers should cultivate and develop their professional ability, coach and encourage their professional development, and objectively provide a very practical platform between managers and managed people.

Performance management provides the necessary foundation for the management and development of human resources in enterprises. Through performance management, the implementation of performance appraisal provides the necessary basis for the management decisions of employees' dismissal, promotion, transfer and demotion, and also solves the problems of employees' training, salary and career planning, so as to be justified.