Performance management is a necessary and valuable practice for both administrative and developmental purposes in organizations. However, many employees involved in traditional performance management, whether as raters or ratees, have negative reactions to it.

The U.S. Office of Personnel Management (OPM) defines performance management as “the systematic process by which an agency involves its employees, as individuals and members of a group, in improving organization effectiveness in the accomplishment of agency mission and goals.” In short, performance management is simply the way an organization defines, monitors, and rewards the performance of employees and their contributions to the organization.

There are many situations in which an employer would like an employee to be relieved of their duties but the situations do not necessarily present a well-documented, policy-violated, fireable offense. These situations, if acted upon incorrectly, could make the organization vulnerable to a lawsuit. This is probably a situation that many HR professionals would like to avoid at any and all costs.

In today's team and collaborative environment, having a performance review with employees is a great communication and evaluation tool. A survey conducted by SHRM in fall of 2012 shows that 74% of companies perform reviews annually, while 21% conduct reviews semi-annually. A small percentage does them quarterly or ongoing.

Performance management is often a challenging area for employers, and many organizations never think they are doing it as effectively as they could be. The truth is that most aren't. Performance management is a lagging area at many organizations, but nonetheless, it's a vital process that should be continuously improved upon in the workplace.