Good performance management is the responsibility of a leadership that is accountable for results. All employees expect that their performance and contribution to the company's results will be fairly judged. The way it is measured should be objective, transparent, and, if possible, quantifiable. For this reason, performance management is the third pillar of the employee value proposition (EVP). Performance management should be about differentiation. If an employee performs well, he or she will expect to be recognized and be rewarded accordingly, and if the converse happens, there should be appropriate actions taken. Employees who consistently demonstrate poor performance have to be pruned. Good performance management is essential if an organization has the desire to drive a high‐performance culture that will allow it to compete effectively in the marketplace. Organizations have to demonstrate the same consistency and rigor with performance management as they do with balance sheets. Discipline has to be enforced throughout the organization, starting from the performance management of its leaders. Most organizations find performance management an important and useful tool. Emotional intelligence is emerging as a critical success factor in the drive to attain a high‐performance culture. This is particularly true in China, where leaders and managers are relatively inexperienced in performance management.