Performance management is the systematic process by which an agency involves its employees, as individuals and members of a group, in improving organizational effectiveness in the accomplishment of agency mission and goals. Planning in performance management means formulation/ setting of performance expectations and goals for groups and individuals to channel their efforts towards achieving organizational objectives. It includes selection of objectives and policies, programs and procedures to achieve the goals. Plans are commitments to specific courses of action growing out of the mental process of planning.

Monitoring means consistently measuring/evaluating performance and providing ongoing feedback to employees and work groups on their progress towards approaching their goals. In an effective organization, assignments and projects are monitored continually. Regulatory requirements for monitoring performance include conducting progress reviews with employees where their performance is compared against their elements and standards. Ongoing monitoring provides the opportunity to check how well employees are meeting predetermined standards and to make changes to unrealistic or problematic standards.

Performance evaluations, which provide employers with an opportunity to assess their employees' contributions to the organization, are essential to developing a powerful work team. Evaluation and reviewing can provide valuable information that demonstrates the success of a program or shows what adjustments need to be made. Evaluation, in the context of management activities, is carefully collecting information about something in order to make necessary decisions about it. A performance evaluation system can motivate staff to do their best for themselves and the practice by promoting staff recognition and improving communication.