What defines formative assessment in the context of performance management?

Formative assessment in the context of performance management is characterized as an ongoing evaluation process during the performance period. This type of assessment allows managers and employees to monitor progress toward established goals continuously, providing feedback that can help adjust performance strategies before the final evaluation occurs. The key aspect of formative assessment is its iterative nature, enabling real-time dialogue and development, which leads to enhanced performance over time.

By engaging in this continuous process, both employees and managers can identify strengths and areas needing improvement, fostering a culture of growth and adaptability. This contrasts with assessments that are conducted at fixed points, such as at the end of the appraisal period or through single, isolated discussions that do not facilitate ongoing improvement or dialogue.

Consequently, this choice highlights the essential role of formative assessment in performance management as a proactive tool designed for improving employee performance rather than merely evaluating it after the fact.