Managing Performance is the procedure of assessment of progress, of an organization, towards a desired goal. It is the measurement, analysis and optimization of resources to provide a service to a level that has been agreed upon. It focuses on the delivery of service.

The basic idea behind performance management is a process through which the management unites the people, systems and strategies, to maximize both effectiveness and efficiency to be able to deliver the desired results. Simply put the statement means, doing the right things and doing the things right. That is, an enterprising organization must include one system that incorporates leadership, and the other that insists on achieving quality.

An effective performance management in an organization can attain leadership skills that can be enhanced alongside attitudes, interpersonal skills and behaviors. This is an important aspect of managing performance as it helps in retaining and maintaining people who embody the basic human capital of the organizations. as they are the ones responsible for the execution of the strategic plans of the business.

It is extremely important for a company to have a strong, performance management. It should be able to engage the systems, people and strategies actively, for the successful execution. This would further result in an increase in the sales and a greater profitability that would probably not be reachable, if the process was not implemented.

With an effective performance management, business will thrive like never before. It is an extremely important process of business management, that is utilized by managers of people, as an effective tool, that is used by them to meet the objectives of the organization.

Performance Management may be able to fulfill the following business objectives:

• The missing link between Aspirations and Results: Nowadays, commercial organizations are increasingly conscious that it is usually not their strategy but the united effort and abilities of their employees to implement the strategy that makes all the difference to their flourishing business. Therefore, it becomes the responsibility of top level managers to fill in the gap between the missing links of aspirations and results, by motivating their employees, through management of their performance.

*To increase the potential of an organization, in order to achieve its strategy, it is important that the organization develops and creates the capabilities of its employees. Effective people management is the only key to improve the businesses performance.

• The most important purpose of Performance Management is to increase the effectiveness of the employees. This should be done, in order to improve the performance of the business.

Managing Performance is associated with paperwork, difficult conversations and bureaucracy, and is therefore often put aside as a chore no one wants to do. However, Performance Management is a process that involves individuals and managers, that use the process on a regular basis, to increase their effectiveness towards the employer's organization.