Performance

Management
Cycle
By

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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
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
Performance Management Cycle Stages

a) Planning- It includes strategic planning and

Planning
goal setting.

b) Monitoring- to check in on the progress of

the work
Performance
c) Reviewing - evaluate the final result of the management
Rewarding cycle Monitoring
yearly work done by the employee

d) Rewarding- The traditional rewards include

bonus, increase in compensation, vacation
Reviewing
time, assigning important projects,
acknowledgment, a positive review and
promotion
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 employee’s goals should contribute to
achieving organizational goals
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
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
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
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
 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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