Performance Management Process Many times, people confuse performance management with one element of the performance management process: performance appraisal. Performance management is much more than a once or twice a year event. It is a critical process that aligns individual goals and performance with the strategic goals of the organization. In some organizations, performance management is part of an overall talent management or human capital management program, which is the process that organizations use to both attract and retain skilled employees. In many organizations performance management and talent management are synonymous. Regardless of whether it is viewed as an element of a larger process or is the overarching process, an organizations performance management plan needs to also be designed to develop and retain talent for the organization. Planning is the first component of a comprehensive performance management plan. This part of the process involves setting expectations and goals for groups and individuals. These goals need to be aligned with the strategic goals of the organization, and they should also include the goals that the individual wants to achieve. Aligning the goals of the individuals and the organization is an effective method of achieving the goals of both. Additionally, involving the individuals in the process of setting goals and expectations can lead to greater employee engagement. Determining measurements is also an important part of the planning element of the process. Using SMART goals is one method of determining measurements. The term SMART goals stands for Specific, Measurable, Achievable (with stretch), Relevant, and Timebound. Another benefit of a SMART goal is that employees will know if they are meeting their goalssetting goals properly will set up an almost automatic feedback loop for the employees. They will know how they are contributing, which can also lead to greater employee engagement. Finally, when employees are involved in the planning, communicating goals and expectations with employees becomes an inherent part of the process rather than something that must be designed separately. Involvement from the beginning encourages two-way frequent communication between managers and employees. How does this part of the Performance Management Process operate within your workplace or an organization that you are familiar with?