What is Performance Development?

Dr. Ryan Giffen

Performance development is a strategy that plays a vital role in any company. Performance development planning, or PDP, reduces the inaccuracies of the general annual review process and, instead, empowers the managers and employees to take an active approach toward positive management and better performance. 

The Basics of Performance Development Planning 

The definition of performance development is quite simple. This is a tool used to improve employee performance. The process assists managers and their workers alike. Additionally, it helps them pinpoint problem areas that need improvement. It also helps with setting reasonable goals and measuring progress. A PDP is an outline for a strategy that helps a company reach its objectives. 

Analyze performance management every quarter. It goes along with other quarterly reviews for the company. This review allows workers and business owners to keep track of all progress made and helps them make adjustments as needed. 

What are the Benefits of a Performance Development Plan?

PDPs offer a great way to measure and improve performance throughout a company. The benefits of a performance development plan include the following: 

  • Having better alignment with your employees and their objectives
  • The ability to measure and track progress over time
  • Accountability
  • A clear guide for reaching goals that are easy to follow
  • Strategic employee development that helps to direct personal and professional improvement for all who are involved in the organization

Who Should Get Involved in The Process?

In most cases, the company manager or other leaders of business will be the most involved in the performance development process. There may be additional essential members of the company involved as well, such as HR, supervisors, and team leaders. Anyone who could have a positive influence or input for the plan should help with the process. 

Those who are the most involved in the process will take on the task of reviewing the worker’s performance and previous PDPs. That will help them determine what needs to be improved the most. Once the plan has been put into place, it is time for the company leaders and the employees to start to work together to review performance and make suggestions for an improved development plan going forward. 

Steps to Take Toward Positive Performance Development 

The following are a few steps that you can take as a business owner to work toward your performance development goals. 

Review Performance 

Review performance over the past quarter and look at where you met your goals, as well as where you could have done better. 

Identify Areas that Need Improvement 

Look at the areas that could use improvement. Is there anything you could have done differently? Would you be able to make those changes now without any additional resources?

Make a List of Reasonable Goals 

No company is going to improve 100% overnight. You must make reasonable goals for your employees. This prevents them from becoming overwhelmed. Being able to meet smaller goals will give your workers the encouragement they need to boost morale and push themselves forward. 

Define Milestones

What goals do you hope to reach shortly and beyond? Be specific about them. With clear goals in place, you will give your workers something that they can work toward, and they will feel more inclined to do so. 


About Dr. Ryan Giffen

With over 20 years of experience, Dr. Ryan Giffen is an expert in human relations and business culture. His career began in hospitality, leading operations and human resource departments for Fortune 500 companies and the like. Not long after, Ryan found his passion for teaching and consulting. He earned a Ph.D. in Hospitality Management with a Human Resources focus from Iowa State University and now works as an assistant professor at California State University, Long Beach. For over a decade, he continues to research and speak on organizational culture, relationship intelligence, and leadership effectiveness. Ryan is also the founder of Inospire, a company helping bosses and employees build stronger relationships with one another.  Lastly, Dr. Giffen is producer and host of the Corporate Shadow Podcast. a show helping everyday employees overcome workplace nonsense.