Performance management involves systematically using data for business improvements by integrating data sources, distributing personalized information to employees, and empowering fact-based decision making. It has two types: employee performance management, which works best with planned goals, clear expectations, predictable rewards/consequences, and consistent feedback; and monitoring company or individual performance. Effective performance management provides employee growth opportunities, rewards qualified employees with greater responsibilities and pay, and establishes standards for acceptable job performance and behavior as well as consequences for unacceptable behavior such as violence, absenteeism, and violating policies.