Performance planning is the process of

• A. Establishing performance goals and standards for an employee.
• B. Scheduling staff vacations.
• C. Creating the annual budget.
• D. Auditing payroll records.

Answer: (A)

Performance planning centers on defining what good performance looks like for a role. It involves setting specific, measurable goals and the standards by which performance will be judged, often aligned with organizational objectives and timelines. This creates a clear roadmap for the employee and a basis for ongoing coaching, development, and later appraisal. That is why establishing performance goals and standards for an employee is the best match: it directly shapes expectations, guides progress, and informs feedback.

The other activities belong to different areas. Scheduling staff vacations is about attendance and scheduling; creating the annual budget concerns financial planning and resource allocation; auditing payroll records focuses on compliance and internal controls. None of these define or guide performance expectations or improvement, which is the essence of performance planning.