Performance Management Cycle

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Performance Management Cycle

• What is performance management cycle
• Performance Management Cycle stages
• What is Planning Stage
• What is Monitoring Stage
• What is Reviewing Stage
• What is Rewarding Stage
• Why is performance management cycle
• important in business

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What is Performance Management Cycle

• The performance management cycle is a model that
  allows management and employees to achieve
  organizational goals through a process of
  employee development
• The properly planned performance management cycle
  helps the employee to align their goals with
  organizational goals

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Performance Management Cycle Stages

1. Planning- It includes strategic planning and goal
   setting.
2. Monitoring- to check in on the progress of the
   work
3. Reviewing - evaluate the final result of the
   yearly work done by the employee
4. Rewarding- The traditional rewards include bonus,
   increase in compensation, vacation time,
   assigning important projects, acknowledgment, a
   positive review and promotion

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What is Planning Stage

• This is the first phase in performance management
  cycle
• During this phase managers develop an overall
  strategic plan for their business
• In the planning stage employee goals are set for
  the performance period
• Each of the employees goals should contribute to
  achieving organizational goals

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What is Monitoring Stage

• The performance of the employee is monitored on
  quarterly basis
• During this stage work related assistance is
  provided to employee
• This step is also used to understand the ground
  reality of goal achievement
• In this step employees goals are aligned to
  organizational goals

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What is Reviewing Stage

• The employees work is reviewed by the management
• In this stage employees actual performance in the
  financial year is evaluated by the management
• The management and employee together review if
  the goals were achieved
• It concludes with a meeting where employee and
  manager discuss performance issues

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What is Rewarding Stage

• Rewarding is the final stage of performance
  management cycle
• When an employee receives the reward it improves
  his or her performance
• Management works hard to reward employees fairly
• The reward is based on the merit and performance
  of an employee

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Why is Performance Management Cycle important in
business?

• By adopting performance management cycle the
  organization can maximize the output of their
  employees.
• The organization can be more competitive by
  following the performance management cycle model
• Employees skills are developed and used in
  meaningful ways
• It helps in employee retention by increasing job
  satisfaction

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Get more information on Performance Management

• Performance Management Cycle
• Performance Management System
• Performance Management Tools Software
• Balanced Scorecard
• Bell Curve Appraisal
• Performance Appraisal
• 360 Degree Performance Appraisal

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