Performance management is a pillar work of modern enterprise human resource management, and its importance is self-evident. With the continuous deepening of domestic electricity market reform, the competition in the electricity industry is becoming increasingly fierce, and the performance management of power generation enterprises is facing more and more problems and challenges. How to effectively optimize enterprise performance management has become an important issue in the operation and management of power generation enterprises. This article analyzes various typical problems in the performance management of D Power Generation Company, and proposes a series of optimization measures such as clarifying performance management goals and strategies, obtaining support and endorsement from the leadership, optimizing the design of assessment cycles, conscientiously providing performance coaching, improving the quality of assessment personnel, and improving incentive feedback mechanisms. The application effect shows that by implementing this series of optimization measures, the efficiency of employee performance management in D Power Generation Company has been significantly improved, effectively promoting the overall management level of the enterprise. This study also provides some reference and guidance for the optimization and reform of performance management in other power generation enterprises.