Performance management is a continuous process that involves setting clear expectations, monitoring progress, providing feedback, and evaluating employee performance to enhance productivity and achieve organizational goals. It includes goal setting, performance appraisals, skill development, and recognition programs to ensure employees meet business objectives effectively. A well-structured performance management system aligns individual efforts with company strategies, fosters employee engagement, and promotes continuous improvement. By using tools like key performance indicators (KPIs), regular reviews, and coaching, organizations can identify strengths and areas for development. Effective performance management not only boosts individual and team efficiency but also contributes to employee satisfaction and business success.