Guide: Performance Management in Project Management

What is Performance Management?
Performance Management is an integral part of Human Resource Management in Project Management, as defined by the PMBOK Guide Seventh Edition. It involves activities to ensure the project's objectives are consistently being met in an efficient and effective manner. It includes performance planning, coaching, feedback and review, and rewards and recognition.

Why is it important?
Performance Management is important because it helps Project Managers to understand the individual and group performance within the project, identify skill gaps, provide feedback and support to improve work efficiency, and motivate team members through recognition and rewards.

How does it work?
The Performance Management process starts with setting clear and measurable performance goals aligned to the project objectives. The Project Manager then continuously monitors, reviews, and provides feedback on the team’s performance against these goals. The process also involves identifying training needs and providing rewards and recognition.

Exam Tips: Answering Questions on Performance Management
1. Understand the key phases of the Performance Management process and their purposes.
2. Remember that Performance Management is a continuous, not a one-time, process.
3. Understand how performance goals are linked to project objectives.
4. Be ready to provide examples of tools and techniques used in Performance Management.
5. Know the difference between formative (ongoing) and summative (final) performance reviews.
6. Familiarize yourself with different types of performance rewards and recognition.
7. Practice answering case-based questions that test your ability to apply Performance Management principles in real-world project scenarios.