Performance management shouldn’t be something that causes angst for employers or employees. Done well, it’s an opportunity to set teams and the business up for success. Here’s how you can enhance your approach.

For many HR practitioners, managers and employees, performance management conversations have long been associated with anxiety, discomfort and avoidance. 

Traditionally framed as corrective, compliance-driven exercises, these conversations were scheduled once or twice a year and often viewed as a box-ticking activity. Performance management was seen as something ‘owned by HR’, rather than a meaningful leadership responsibility embedded in everyday work.

In reality, meaningful performance management is neither a single process nor a box to be ticked. It’s a leadership function, supported by HR, that must be woven into the everyday fabric of how we engage, coach and support our people.

Over the past 25 years, I’ve worked with countless organisations where performance appraisals have been treated as an administrative burden rather than a strategic tool. But it doesn’t have to be this way. Here’s how to rethink the system – starting with four key foundations.

1. Performance is a management responsibility, not a HR process

One of the most common myths I encounter is that performance management is the responsibility of HR. It’s not. HR can provide the guardrails – frameworks, tools and coaching – but it’s managers who must own the outcomes. 

They are the ones best placed to create the optimal conditions for performance to flourish across the employee lifecycle – they know the employees best and have a deep understanding of their strengths and growth opportunities.

Performance should never be treated as an isolated event. Instead, it should be viewed as an ongoing leadership and management commitment that touches every interaction and decision a leader makes about their team.

2. Regular feedback is the ‘silver bullet’

The most overlooked element of performance management is also the most powerful: frequent feedback conversations.

Regular feedback, given informally and in real-time, is the silver bullet to better performance. It’s through these day-to-day interactions that we provide role clarity, align expectations and create space for honest reflection.

Annual appraisals alone are insufficient. A once-a-year conversation, often conducted in a formal setting with a form in between people, can feel alienating for both parties. Worse, it signals to employees that performance is only worth discussing at scheduled intervals and in a formulaic manner.

Instead, high-performing organisations embed bimonthly or even monthly check-ins, where the conversation is more natural, authentic and responsive. These interactions allow leaders to intervene early, whether it’s to support wellbeing, resolve team dynamics or adjust goals in a rapidly changing environment.

Learn from Catriona Hardiman about how to design more meaningful performance management approaches with AHRI’s new Performance Mastery short course.

3. Accountability must be co-designed and collegial

Strong performance cultures don’t rely solely on managers to enforce standards. They empower teams to hold each other to account.

This is especially important when it comes to behaviours. We often think of performance in purely technical terms, but behaviour is just as important. If people don’t feel psychologically safe to raise concerns or give feedback to peers, small issues can snowball into deeper conflicts that erode morale.

One approach I’ve seen work well is co-designing behavioural expectations at the team level. Frameworks like ‘above the line/below the line’ behaviours allow teams to articulate what’s acceptable and what’s not – together. 

When someone deviates from these shared commitments, colleagues feel comfortable saying, “That’s not how we agreed to operate.”

This reduces the burden on managers to feel as though they are constantly policing behaviours and helps prevent cultural drift that can undermine even the most talented teams.

4. Probation is an extension of recruitment – treat it that way

Organisations often treat probation as a formality: a tick-box exercise that follows a long, exhausting recruitment process. But this period is a vital extension of your selection strategy, so it must be approached with care.

Being new is clunky. Even highly experienced hires need guidance as they navigate your systems, norms and culture. Too often, we assume that someone’s past success means they won’t need support. That’s a mistake.

Instead, I recommend tiered, time-based goal setting throughout the first three to six months. Clarify what success looks like in week four, month two and month five. Walk alongside the new employee, no matter their experience level, celebrating progress and addressing issues early. 

If you identify a misalignment – be it behavioural, technical or cultural – you have a clear, legally supported window to act with integrity and fairness.

When someone isn’t meeting expectations, early intervention is critical. If you’ve embedded regular feedback well, you’ll often resolve issues before they escalate.

But when you do need a performance improvement plan, approach it with clarity and care. Your goal should be one of two outcomes: support the individual to succeed, or make the difficult decision to exit fairly and transparently. Half-hearted attempts or avoidance serve no one.

Ask yourself: can I sleep well at night, knowing I gave this person a fair opportunity and the support they needed? If the answer is yes, then you’ve done your job.

Example in action: rebuilding a performance management approach

One organisation I worked with recently took a courageous approach. They asked themselves a tough question: are we doing performance reviews because they genuinely drive results, or because it’s what we’ve always done?

The answer was the latter, so they started again. They decoupled the appraisal process from salary reviews. They dropped the cumbersome HR software. They replaced annual reviews with monthly check-ins designed to foster authentic dialogue. And the results were palpable: stronger engagement, clearer expectations and a more human leadership culture.

Of course, this won’t be right for every organisation. But the principle stands: if your system isn’t working, don’t tweak around the edges. Redesign it based on the outcomes you want to achieve.

A human-centred approach

The best performance systems aren’t systems at all. They are human-centred, leader-led practices that prioritise clarity, accountability and growth. They don’t rely on rigid cycles or scripted conversations. They are dynamic, embedded and deeply connected to how we lead every day.

Performance management can and should be meaningful. But only if we’re willing to rethink what it’s really for and who it’s really serving.

Catriona is a certified Fellow of the Australian Human Resources Institute with 25 years’ experience in HR, industrial relations and organisational development. She has held executive HR roles across corporate and consulting environments, and is the founder of Leadology, a leadership and HR consultancy based in Warrnambool.

Demystify the performance management process, learn current trends and how to engage your organisation in the process with AHRI’s new Performance Mastery short course.