Performance management is the process through which managers ensure that employee’ activities and outputs contribute to the organization’s goals. The process requires knowing what activities and outputs are desired, observing whether they occur, and providing feedback to help employees meet expectations. Effective performance management can tell top performers that they are valued, encourage communication between managers and their employees, establish uniform standards for evaluating employees, and help the organization identify its strongest and weakest performers. To meet these objectives, performance management includes several activities as shown in Figure 7.1. First of all, the organization specifies which aspects of performance are relevant to the organization. These decisions are based on the job analysis. Next, the organization measures the relevant aspects of performance by conducting performance appraisals. Finally, through performance feedback sessions, managers give employees information about their performance so they can adjust their behavior to meet the organization’s goals.