The Principles of Performance Management CPD Approved In any organisation, the traditional model of strict command and control wastes a significant amount of time and money. Mutual trust, employee motivation and readiness to perform can easily be undermined. Performance management, on the other hand, offers a different, much more effective approach. In formal terms, performance management involves the achievement of performance targets through the effective management of people and the environment in which they operate. It’s about setting achievable goals for the organisation and targets for individuals and teams.