Performance management involves monitoring, analyzing, and optimizing applications to ensure they run efficiently and meet user expectations. By tracking key metrics such as response time, resource usage, and error rates, teams can identify and resolve performance issues before they impact users. It encompasses continuous monitoring, data analysis, and optimization to improve application reliability and scalability. Automation also plays a key role in alerting teams to potential problems, enabling quick resolution. Performance management is essential for delivering high-quality software that remains responsive under varying loads, ultimately improving user experience and maintaining application performance over time.