Performance Management Cycle

The Performance Management Cycle has an important part to play in the implementation of motivation in the workplace, our guide below will assist in the creation of a performance management strategy and how to maintain it.

The Performance Management Cycle

Below is a typical performance management cycle diagram, it contains 5 stages to consider when implementing a performance management scheme:

The 5 stages in the cycle are; Plan, Manage, Review, Reward and Renew, depending on the type of organisation, the management cycle may take place over a year's period or month by month. In this section of performance management we will discuss all 5 stages.

Stage 1 - Planning

The first stage of the performance management cycle is to plan, this will involve getting together with an employee and evaluating expectations for a set period of time. The first stage in the planning process will be to evaluate an employees current role and performance, this will gain an initial idea about areas of improvement and realistic targets.

Stage 2 - Manage

Implementing the plan and managing performance is stage 2 of the cycle. This can be providing support to an employee at all times and ensuring that the appropriate systems and tools are available to maximise performance expectations.

Stage 3 - Review

Making sure that the performance structure set out in stage one is being adhered to, this may be particularly useful is there are any barriers to performance that could have a direct affect on other areas of the organisation. Speaking to an employee mid way through a performance cycle is a good chance to tweak their objectives depending on external factors.

Stage 4 - Reward

If all of the objectives have been met, stage 4 of the performance management cycle is to reward employees. Reasons and types of rewards will be discussed during stage one when objectives are outlined.

Stage 5 - Renew

The final stage of the performance management cycle is renew. This can involve analysing the previous objectives and looking at ways to improve on them and how to plan for the next cycle. Methods of rewards can vary from an annual bonus to share scheme options.

If you would like to know how you can implement a reward scheme as part of your performance management cycle, then why not talk to us today about your requirements.