Learning path · For leaders, HR managers, and employees preparing for year-end reviews

10 Terms to Know for Performance Review Season

10 terms · About a 12-minute read · From the Nanum Consulting glossary

Review season brings tension to every organization. Reviewers wonder what to write; the people being reviewed wonder what the criteria are. This path arranges 10 review-related terms in cycle order: the frameworks for setting goals (KPI, OKR, MBO), the checkpoint mechanism (1-on-1s), the evaluation tools (360-degree feedback, competency assessment), and what comes after reviews (development and succession).

Leaders before review conversations, HR managers before designing the system, employees before writing a self-assessment — in 12 minutes you will have the whole map.

  1. 1Performance Management · Performance ReviewThe full cycle of linking organizational and individual goals, checking progress, and evaluating results to connect them to rewards and development. The performance review is one stage of this cycle.
  2. 2KPI · Key Performance IndicatorA quantitative measure of how well an organization, team, or individual is meeting its goals.
  3. 3OKRA goal-management method that aligns an organization’s direction through ambitious Objectives and the Key Results that measure their achievement.
  4. 4MBO · Management by ObjectivesAn approach where the organization and each employee agree on goals together (Management by Objectives) and manage performance by how well those goals are met.
  5. 51 on 1 · One-on-OneA regular 1:1 meeting between a leader and a team member. Beyond checking performance, it is a core leadership tool for supporting growth, relationships, and engagement.
  6. 6360-Degree Feedback · Multi-Rater ReviewA review method that combines feedback on a person’s skills and behavior from several perspectives (manager, peers, direct reports, self, and sometimes customers) rather than from a single manager.
  7. 7IDP · Individual Development PlanA personal development plan in which an employee defines their career goals and required skills, then agrees on and carries it out with their manager.
  8. 8Assessment Center · Competency AssessmentA method in which participants complete job-like simulations and exercises while multiple trained assessors observe their behavior and evaluate competencies. Widely used for promotion decisions and leader selection.
  9. 9High Potential · HIPOEmployees seen as likely to succeed in larger, more complex roles in the future, beyond their current performance. The key is to assess performance and potential separately.
  10. 10Succession PlanningA plan to identify and develop successors for key positions in advance, so the organization stays steady even when people leave.

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FAQ

Should we use KPIs or OKRs?

They serve different purposes. KPIs suit managing stable operating metrics, while OKRs suit ambitious change goals, and many organizations use both. Either way, be careful: tying them directly to review scores makes goals more conservative.

What is the fastest way to reduce complaints about reviews?

Eliminate the year-end surprise. When quarterly check-ins and regular feedback give people interim signals, the year-end review simply confirms what everyone already knows. Training leaders in conversation skills is the fastest fix.

How do you connect review results to employee development?

The IDP (Individual Development Plan) is the bridge. The standard flow is to turn gaps revealed in the review into next year’s development activities, and to move high-potential talent into the succession planning pool.

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