Performance Management Cycle

The performance management cycle is a continuous process for evaluating employees throughout the year. Every employee moves through it, starting with goal-setting at the beginning of the year, continuing through ongoing progress monitoring and development support, and ending with a formal evaluation.

The cycle generally breaks down into four stages:

• Planning: Setting performance expectations for the employee, often as part of their job description. It is best practice to involve the employee directly in this process.
• Monitoring: Actively tracking the goals set during planning, through continuous measurement and ongoing feedback on progress.
• Developing: Using what comes out of monitoring to address underperformance, or to support an employee who wants to push a strength even further, through training, challenging assignments, and other growth opportunities.
• Rating and rewarding: Assessing performance, usually during the employee’s annual performance appraisal, to gauge their contribution to the organization. Employees with strong performance are typically recognized through praise, a raise, time off, recognition, a promotion, or some combination of these.