This report delves into the core aspects of people management, examining the contemporary issues faced by line managers, the essential knowledge, skills, and behaviors required for effective people management, and the crucial HR processes that underpin and support management in performance management. The report analyzes challenges such as innovation, regulatory changes, employee retention, diversity issues, and communication gaps. It highlights skills like organization, multitasking, communication, conflict management, and training. Furthermore, it explores the role of HR in planning, remuneration, performance management, and employee relations. The report emphasizes the importance of employee satisfaction, providing recommendations for fostering a positive work environment, promoting employee appreciation, and ensuring effective communication and involvement in decision-making processes to enhance overall business performance. The analysis is contextualized through the example of Sainsbury plc, a major UK supermarket chain, to illustrate real-world applications of these principles.