The performance management cycle is a structured process that helps align employee goals with organizational objectives through stages of planning, monitoring, reviewing, and rewarding. Each stage plays a critical role in developing employee performance and enhancing business productivity, ultimately fostering job satisfaction and retention. Implementing this cycle allows organizations to maximize employee output and remain competitive.

1. Performance
Management
Cycle
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2. 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

3. 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

4. Performance Management Cycle
Stages
a) Planning- It includes strategic planning and
goal setting.
b) Monitoring- to check in on the progress of
the work
c) Reviewing - evaluate the final result of the
yearly work done by the employee
d) Rewarding- The traditional rewards include
bonus, increase in compensation, vacation
time, assigning important projects,
acknowledgment, a positive review and
promotion
Performance
management
cycle
Planning
Monitoring
Reviewing
Rewarding

5. 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

6. 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

7. 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

8. 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

9. 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

10.  Performance Management Cycle
 Performance Management System
 Performance Management Tools &
Software
 Balanced Scorecard
 Bell Curve Appraisal
 Performance Appraisal
 360 Degree Performance Appraisal
Get more information on
Performance Management
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