The performance management cycle is a model that allows management and employees to better achieve organizational goals through a structured process of employee development. The performance management cycle is a subset of the performance management process or strategy. It is a four-step process that includes planning, monitoring, reviewing, and rewarding. Increased competitiveness, structural flexibility, and staff motivation are all advantages of using this strategy ( Mattone, 2013).
A component of the performance management process or approach is the performance management cycle. Planning, monitoring, reviewing, and rewarding are all steps in the process. Using this method results in increased competitiveness, structural flexibility, and employee motivation ( Russell and Russell, 2009).
Figure 1.0 (The four stages of Performance Management Cycle)
Source (HBR guide to performance management., 2017).
Although some firms have discovered that more regular check-ins boost employee performance, the model typically runs for a year and ends with a performance evaluation. One of the advantages of implementing a proper performance management cycle plan is that employees will be more aligned with the organization's goals, understand both their own and the organization's wider objectives, and have a solid roadmap to assist them reach their goals (de Waal, 2007).
1.Planning
The planning stage is the bedrock of the entire procedure. Individual goals and objectives for the performance period are set during this phase.S.M.A.R.T. (Specific, Measurable, Achievable, Relevant, and Time-Based) goals boost employee motivation and commitment to goal achievement, resulting in higher success.
For an Example my Current work place Before management talks to the employee, the management team should meet and decide the organization’s goals and objectives for the year. Once the management team knows the details of what they want the employee to achieve, it is time to meet with the employee and make a strategic plan for the year. Each of the employee goals set should align with the organization’s goals, and contribute to achieving them
2. Monitoring
During the managing phase of the cycle, regular communication is essential. Both parties are constantly informed of progress toward the effective fulfilment of goals and expectations through official and informal talks. These dialogues also give excellent opportunity for quick feedback and instruction. Because the performance cycle lasts several months, it's critical to keep note of the high points and problems. These notes will come in handy when it comes time to talk about the year's performance.
This also the way to example from My working place doing, if it is only done once or twice during the year or Quarterly. It is advised that management meets with employees on a monthly or quarterly basis to check in on progress, offer help if needed, assist in solving any problems that might have arisen, and adjust goals, if necessary. Breaking the goal down into monthly subgoals can smooth the process, giving the employee a more manageable task. In holding monthly or quarterly meetings with the employee, management can more easily oversee this process. Organizational goals can also shift during the year, and more frequent meetings can allow for new goals to be introduced
3. Reviewing
At the end of the cycle, both parties have a meeting to discuss the year's performance. Both sides should have a productive performance review discussion if S.M.A.R.T goals have been created (planning phase) and continuing communication/feedback has taken place (managing phase).
This also an example from my current work place, the employee can present their perspective on how well they did during the year, half year or Quartile and receive reviews from the management team on how well they met or exceeded their goals. If there have been performance issues during the year, this is where they can be brought up. It is recommended that if issues are being discussed, possible solutions are also presented.
4. Rewarding
Employees' annual base pay may be increased in accordance with their overall performance rating. It's crucial to remember that raises in performance should be earned. Over roll performance evaluations should be used to differentiate rewards.
For Example, this is the way Our company followed Some rewards that might be offered are:
- An increase in compensation
- A one-time bonus
- Increased vacation time
- Special projects
- A promotion
- A positive written review
- Company-wide acknowledgment
The significance of the performance management cycle in the corporate world.
An organization may maximize the production of their employees, verify that organizational goals are being met, and measure the performance of each employee by implementing the performance management cycle plan example stated above. (Hansen, 2021).
Following the performance management cycle model allows an organization to examine its structural goals on a regular basis, allowing for a faster reaction to changing market conditions. Increased competitiveness is a result of this flexibility. (Hansen, 2021).
The performance management cycle plan also benefits employees.
They regard themselves as a valued part of a team as a result of their work with and support from their management team. Their abilities are being honed and put to good use, and they are being rewarded for their efforts. (Hansen, 2021).
According to (Hansen, 2021) all above contribute to job happiness and help retain employees
List of References .
Armstrong, M. and Baron, A. (2010). Handbook of Strategic HRM. NHRD Network Journal, 3(4), pp.104–104.
Armstrong, M. and Taylor, S. (2020). Armstrong’s Handbook of Human Resource Management Practice. 15th ed. S.L.: Kogan Page.
Baiochi, S.V.F., Guerino, G.C., Leal, G.C.L., Balancieri, R., Cotrim, S.L. and Galdamez, E.V.C. (2021). Influence of organizational life cycle on performance management design in the software industry. International Journal of Productivity and Performance Management.
Bernardin, H.John. (1992). An ‘analytic’ framework for customer-based performance content development and appraisal. Human Resource Management Review, 2(1), pp.81–102.
de Waal, A.A. (2007). Successful performance management? Apply the strategic performance management development cycle! Measuring Business Excellence, 11(2), pp.4–11.
Hansen, A. (2021). The purposes of performance management systems and processes: a cross-functional typology. International Journal of Operations & Production Management, ahead-of-print(ahead-of-print).
HBR guide to performance management. (2017). Boston Massachusetts: Harvard Business Review Press, [] ©20.
Mattone, J. (2013). Powerful performance management. New York: American Management Association.
Russell, L. and Russell, J. (2009). ASTD’s ultimate performance management : training to transform performance reviews into performance partnerships. Alexandria, Virginia: Astd Press.
