Performance management is essential for aligning employee effectiveness with organizational goals by setting clear objectives, providing ongoing feedback, and conducting regular reviews. The performance appraisal process formally assesses employee performance, identifying strengths and areas for improvement while informing decisions related to promotions, salary adjustments, and career growth. Key components include setting measurable goals, monitoring progress, and gathering data and evidence to evaluate performance. With a focus on developing plans and implementing follow-ups, this system ensures continuous improvement and supports overall organizational success.