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The fundamental process of good management is the performance management process. Employees perform best and are most satisfied when they understand expectations and know how they are doing. When boiled down to its simplest view, managing performance implements the following steps: Set, communicate, and gain concurrence on your expectations for the employee. Track performance against these expectations. Give feedback, training and coaching based on performance against expectations on an ongoing basis. Formally appraise the employee at least annually for a record of performance to be used as input to merit compensation, promotion, discipline, etc.
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