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 part of the performance management process or strategy, it is shorter and utilizes a continuous four-step procedure of planning, monitoring, reviewing and rewarding . The four main stages of the performance management cycle are:
1. Planning: In this stage, the groundwork for success is laid down. Before management talks to the employee, the management team should meet and decide the organizations goals and objectives for the year. This involves the overall strategy for the business, but also the personal objectives for all employees and teams, including development goals, specific tasks, targets, actions and behaviors. 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.
2. Monitoring: In this stage, monitoring is a key function in achieving the goals set out in planning. It involves tracking progress against objectives and targets set out in planning. Monitoring should be done regularly throughout the year to ensure that progress is being made.
3. Reviewing: In this stage, performance is reviewed against objectives set out in planning. This review should be done regularly throughout the year to ensure that progress is being made. Feedback should be given to employees on their performance.
4. Rewarding: In this stage, rewards are given to employees who have achieved their objectives set out in planning. Rewards can be financial or non-financial .