Hitesh is a good salesman and works for an ITcompany. But, his performance in 2001-02 was affected because of the slump in the ITmarket. However, his boss fails to acknowledge it and rates his performance as poor. This is an example of

Performance management is the process businesses use to ensure productive employee activities and results. The business tries to incentivize actions that are in line with the organization's objectives.
 

Effective performance management systems typically include the following three broad components: goal setting, performance review and a performance improvement plan.