What is a performance management system?

A performance management system is the structured framework a company uses to set goals, track progress, give feedback and evaluate performance, connecting individual work to company strategy through a continuous cycle. A performance appraisal is one evaluation event inside it. The system is the planning, coaching, reviewing and development that surrounds those evaluations and makes them meaningful. Most modern systems run a cadence of weekly check-ins, quarterly goal reviews, and one or two formal cycles a year.