Performance management is the process of planning, supervising, and improving the performance of individuals, teams, and the organization. The goal is to increase productivity, set performance goals, measure performance, provide feedback, develop performance, and support effective decision making. In performance management, new approaches that are more oriented towards employee development and engagement have replaced traditional approaches that focus on evaluation and control. This research methodology is based on literature review and discusses competency-based approaches, goals, and continuous feedback. Employee involvement in performance management provides benefits such as increased satisfaction, motivation, individual and team performance, skill development, communication, collaboration, and the formation of a motivating culture. Recognition and reward are also important in performance management, as they can improve employee motivation, performance, retention, and long-term contribution in the organization.