Performance Management Cycle
                     Performance 
Management 
Cycle
By
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PERWFhOaRt iMs ApeNrCfoErm MaAnNceA GEMENT CYCLE
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 
goal setting.
b) Monitoring- to check in on the progress of 
the work Perrffo
rrman
c) Reviewing - evaluate the final result of the ce  
man
yearly work done by the employee age
mentt  
cyyclle
d) Rewarding- The traditional rewards include 
bonus, increase in compensation, vacation 
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

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