A performance review refers to managing and monitoring employee performance should be done proactively, rather than simply in response to incidents or poor work output. Having regular reviews gives both employees and managers to discuss workload, output, issues and concerns.

It also means giving employees just-in-time feedback so only minor adjustments have to be made to work practices. Some companies have regular, formalised performance reviews (monthly, quarterly, annually) with bonuses or other conditions attached to the outcome. Other organizations may prefer to use a less formal approach, and use the process as a way of stimulating open communication with staff.