Performance includes (a) behaviors and actions (what an employee does) and (b) results and products (the outcomes of an employee’s behavior). Both of these components are important and they influence each other. Behaviors and results create a virtuous and self-reinforcing cycle that together constitute performance.

There are two characteristics of the behaviors and results we label performance. First, they are evaluative. This means that they can be judged as negative, neutral, or positive for individual and organizational effectiveness. Second, performance is multidimensional. This means that there are many different types of behaviors and results that have the capacity to advance (or hinder) organizational goals.

Contribution to the effectiveness of others in the work unit could be assessed by using a scale that includes anchors demonstrating various levels of competence. Performance management systems also include measures of results or products that we infer are the direct result of employees’ behaviors. When addressing performance problems, managers first need to identify which areas are hampering performance, and then, help the employee improve.