The ability to competently manage employee performance is critical for students graduating with degrees in management. This article provides a competency development exercise (CDE) for use in graduate and undergraduate management courses to increase students’ performance management competence. The CDE includes providing employee feedback, disciplining employees, and conducting termination meetings. Procedures and assessment tools are provided for utilizing the exercise in conjunction with video technology and multisource feedback. In addition, guidance is given for adapting and condensing the CDE from 3-6 hr to 30-60 min. Finally, data are presented showing that the exercise significantly affected students’ performance management competence.
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