The four major processes of performance management are: Planning: Managers and employees establish performance expectations and set SMART goals together. Monitoring: HR and managers monitor employee performance in relation to the goals set, and provide regular feedback to employees. Developing: The data obtained during the monitoring stage is analyzed, and the results are used to improve employee performance through further training, assigning extra projects, etc.  Rating & rewarding: Finally, employee performance is rated, which helps quantify it and determine the value every employee adds to the company. Poor performance can then be addressed, while excellent performance can be recognized and rewarded.