Performance management is a continuous process that involves setting goals, monitoring progress, providing feedback, and evaluating employee performance to ensure alignment with organizational objectives. It helps businesses enhance productivity, improve employee engagement, and identify areas for growth and development. A strong performance management system includes clear communication, regular assessments, and constructive feedback, fostering a culture of accountability and motivation. By aligning individual performance with company goals, organizations can drive efficiency and maintain a competitive edge. Effective performance management also encourages professional development and helps in recognizing and rewarding high performers, ultimately leading to a more engaged and successful workforce.