The performance plan is a formal process used by managers to help employees improve performance or modify behavior.The Performance settings enables to setup the process by which managers and employees can come together to discuss goals, objectives, and expected performance throughout the year. This process allows the managers and employee to improve their communication and plan for higher levels of output from the unit or department. The actual performance evaluation is a logical extension of the process which allows the manager and employee to appraise and discuss the accomplishment of certain standards and goals.