Performance Management Glossary

A multi-rater evaluation method gathering input from supervisors, peers, direct reports, and other stakeholders.

A strategic management tool measuring performance across financial, customer, internal process, and learning and growth perspectives.

A rating instrument that uses specific behavioral examples to define each performance level, reducing subjectivity in evaluations.

A process where managers collectively review performance ratings to ensure consistency, fairness, and the application of common standards.

The inclination to rate most employees near the midpoint of a scale, avoiding extreme ratings.

A developmental practice in which a manager or mentor helps an employee improve performance through dialogue, feedback, and skill building.

A framework defining the specific knowledge, skills, abilities, and behaviors required for effective performance in a role.

The degree of emotional commitment, motivation, and discretionary effort an employee devotes to their work and organization.

A performance rating system requiring managers to distribute employees into predetermined categories, such as top, middle, and bottom performers.

The process of translating high-level organizational goals into aligned objectives at the departmental, team, and individual levels.

A cognitive bias in which an overall positive or negative impression of a person influences evaluation of their specific traits or performance dimensions.

A quantifiable measure used to evaluate the success of an individual, team, or organization in meeting objectives.

A metric that measures outcomes or results after they have occurred.

A predictive metric that measures activities or conditions expected to influence future outcomes.

A rating error in which managers consistently give higher ratings than performance warrants.

A participative goal-setting process developed by Peter Drucker where managers and employees jointly define and track measurable objectives.

A talent assessment matrix that plots employees on performance and potential axes to inform development and succession decisions.

A goal-setting methodology that pairs qualitative objectives with quantitative key results to drive alignment and accountability.

A formal, periodic evaluation of an employee's job performance, typically documented and used for administrative and developmental decisions.

A formal, documented plan for an underperforming employee that specifies improvement areas, targets, timelines, and support.

A continuous process of setting expectations, monitoring progress, providing feedback, and developing employee capabilities to achieve organizational goals.

The tendency to overweight recent events when evaluating performance, rather than considering the full review period.

An evaluation method where employees rate and reflect on their own performance prior to or as part of the formal review process.

Goals that are Specific, Measurable, Achievable, Relevant, and Time-bound.

The process of identifying and developing employees to fill key leadership positions when they become vacant.