Best Performance Management Company in Kerala | HSJB

BusinessConsulting0Developing a Performance Management Cycle

A performance management cycle is the method that ensures the management sets business goals, aligns employee goals to the company’s, and objects to achieving the set goals at the end of the cycle. The management should confirm employees have proper support through training and constructive feedback.

Generally, a performance management series would last a year. But in the current scenario, this isn’t the case anymore. In a labor market accenting feedback, employee engagement, and employee experience, more companies are becoming more alert in their performance appraisal cycle.

The Performance Management Cycle Has Four Stages

The performance management cycle is first mentioned in Peter Drucker’s 1954 book ‘Management by Objects.’ His book explained how management must break down organizational goals into smaller, more specific individual and team goals.

Michael Armstrong’s book ‘Handbook of Performance Management has the most frequently cited performance management cycle. He described the four steps of the performance appraisal cycle in it. They are as follows: plan, execute, monitor, and review. It has been improved over the years to suit the request for the organization’s current needs. Today, they are as follows:

  • Planning
  • Monitoring
  • Developing and Reviewing
  • Rating and Rewards


The first thing that an organization must perform is planning. Before engaging with employees and other team members to assign goals, management must first strategize on the goals the organization needs to meet. After the organization’s covenant is clear, the administration can define personal goals, targets, and precise objectives for teams and personnel.

Aside from assisting employees in determining their goals, both parties will discuss the cycle’s training and development objectives. Making a training and development schedule is critical to demonstrating to employees that you are interested in their personal development and career development, not just reaching company goals.

While planning employees’ goals, managers can apply the SMART agenda for efficient goal-setting.


Planning and not following up with it is a formula for failure. Managers and administrators are to monitor the goals uninterruptedly. In the past, managers trailed up once or twice a year, but as we now know, this can be unsuccessful. To ensure the employees are on target to attain their goals. There needs to be constant follow-up and feedback to iron out any subjects and provide support.

Ideally, monthly or quarterly conferences will take place. Some organizations have even chosen weekly or bi-weekly sessions. It should also be likely to adjust deadlines to accommodate unforeseen conditions or unaccounted variables, for example, a pandemic or a new law in place.

Developing and Reviewing

Management does a review near the end of the cycle. If the manager or supervisor worked successfully with the employee over the first two cycles, the third cycle should be little more than a formality between the manager and the employees. Development entails looking at previous cycles and asking the following questions:

If the individual has the necessary skill set to carry out their duties?

How much had they assimilated as a result of their experience?

Was the training assigned at the start of the cycle of usage in order to complete the task?

What other abilities should they strive to acquire?

The goal of the third cycle’s development feature is to assess how well they have developed and what more training they will require.

Rating and Rewards

This phase is where management gives its scores to teams and employees. Management should take suitable actions against employees that don’t meet their goals. It may be a warning, a fine (If such an agreement happens), or termination if it would be terrible to work together. On the other hand, for staff who either meet their targets or overachieve, it is crucial to reward them fairly.

This action sends the message that the company standards those who put in the work and get results. It also signs to employees that the organization raises their input. This last cycle is very vital because not acknowledging your employees can discourage them, and the worst-case situation leads to resignation. It can also lessen productivity, knowing that management will not reward their hard work.

After completing a cycle, it’s time to come together again and commence a new one.


Peter Drucker based the performance management cycle concept on the conventional method of appraising personnel. Organizations can adapt it to match the growing awareness of constant feedback. Its framework has made it ageless, showing that corporations get it right when it comes to maximizing employee performance.


Leave a Reply

Your email address will not be published. Required fields are marked *

× How can I help you?