Introduction to Performance Management Cycle for Organizations

Performance management is a critical concern for businesses today. This is because it enables and equips a business to achieve and attain a competitive edge in the market. Performance management can be described as a continuous systematic process through which employees, individuals and members come together in unison with an aim of improving the overall effectiveness for the organization. This enables an organizations ability to stand out depending on the level of services offered and delivered by them. Through accurate management performance, the goals and missions can be termed as the major contributing factors to the achievement of organizational goals. This paper will aim at analyzing in details the performance management cycle used in an Institution.

Explain the performance management cycle

 A performance management cycle can be described as a process that involves planning, organizing, coordinating and controlling a project effectively and with an aim to achieve the set organizational objectives. This cycle is mostly used in order to describe decision making strategies essential during a projects life-cycle which basically involves the roles, tasks and responsibilities of both the manager and the employees. Notably, the cycle entails five different processes, which entails five different cycles. These include planning, monitoring, developing rating and finally rewarding.

Phase 1: Planning

Basically, planning involves a fore action or decision taken with an aim to achieve certain set objectives. The plans laid down should be realistic and achievable and must address the alignment of priorities which includes the employees, teams and organization as a whole. Through planning, an organization is able to meet the costs and expenditures which may arise and the manager in charge is able to plan and allocate resources effectively.  Additionally, ethical leaders can be a guarantee for the smooth running of a business (Rusel & Russel J, 2009).

Phase 2: Monitoring

Monitoring simply means the consistent performance measurement, through the provision of regular feedbacks clearly stating the level of progress toward the achievement of the goals set. This phase enables leaders to constantly check on how the employees are going about business (Barrows & Neely, 2012). Also, it enables those in power to identify various challenges facing employees where they can be in a position to adjust and correct the problem and resolve as soon as they are recognized. Additionally, the supervisor gets to point out an employee’s progress and promote awareness on what needs to get done and what needs to left out.

Phase 3: Developing

The identification of the employees and the organizations potentials and expertise is pointed out in this stage. Here, an organization basically majors its focus on improving the current areas of expertise by allowing new knowledge and skills to be brought forward especially where the employees skills show potential (Senguta & Bhattacharya, 2007). It is however crucial for the manager to identify such opportunities, and provide coaching and social support where necessary so as to bring about the best from the employees. This can be done through means of formal and informal training, coaching and networking when applicable.

Phase 4 and 5: Rating and rewarding

Rating is the fourth phase and basically involves the evaluation of employees by the managers in an organization. This could include the overall performance monitoring of employees during the period. This step enables an organization manager to be in a position to identify where certain plans have been achieved (Bhattacharyya, 2011). Finally, the manager in charge is expected to give rewards to employees with regards to the amount of effort put in place and for their contribution to the project. Rewards could be in form of cash incentives, promotion, and recognition and also awards.


Importance of performance management

In an organization, it is important for a manager to recognize the efforts brought forward by their employees as they form an integral part for the smooth running of any business. Performance management being a vital factor in an organization has various benefits (Venkateswara, 2004). These include: organizational benefits, where improved productivity from employees is experienced, barriers of communication are overcome, accounts are clear, cost advantages are experienced and the overall improvement of an organization’s performance.

Second, the manager highly benefits through enhanced efficiency and consistency in work place as well as it saves on time and reduces employee conflicts within the organization. Finally, employees benefit from this through promoting job satisfaction, through rewards awarded to thereby the manger and through job clarification which brings about the overall general performance of an organization (Tapmoy, 2008). Through this process, employees are bale to understand their responsibilities and link their performance to the expected rewards thereafter and career development.Top of Form

Performance appraisal criteria

Through research carried out by Mac Lean, he tries to identify the various criteria’s which be used to appraise different employees in an organization (Mac Lean, 2001). Performance appraisal can be defined as a method through which an employee’s job performance and productivity can be evaluated. To begin with, an employee can be given a work sample test where his levels of skills can be tested and evaluated so as to ensure efficiency in an organization. Second, the length of service offered by an employee should be outlined. Through this employee and manager relations can be outlined in order to prepare for the incoming tasks.

On the other hand, employers should ensure that employees get enough time to rest for maximum productivity in the work place. Finally, managers are required to rate their employees in accordance to the activity level and work done within a certain period of time. Through this, an organization will be in a position to conduct their activities having a set plan only focused in achieving their goals.

Poor performance management process

Just like in every other business organizational structure, cases of mismanagement and under performance are experienced. Poor performance is an activity where the employees or the manager fails to perform or poorly perform their roles and duties.  Some of the reasons which may bring about underperformance in an organization include interpersonal differences between employees. Secondly, lack of motivation to employees by employers, this could be in form of job motivation or cash incentives and could greatly influence a worker negatively. Motivation gives employees the morale to work effectively (Anthony, 2014). Third, which is very common especially in our modern world is a mismatch with an employee’s capabilities and the job they are posted to. Finally, other factors such as work place bullying, physical or mental health problem, personal issues among others could result to under performance in the work place.



In conclusion, performance management should be a vital organ in any organization. This is because, it has enabled various institutions to plan, develop, monitor, review and reward their employees appropriately, in accordance to the level of effort put in place. Additionally, in order to cumber out under performance in an organization, managers are expected to employ capable employees who have skills and expertise in their selected fields so as to fight out the issue. Finally, managers are requested to maintain a mutual relationship with their employees so as to promote cooperation hence the smooth running of the company which will therefore bring an organization to the achievement of their objectives. It is the responsibility of a business leader to motivate and communicate to the team on what constitutes ethical performance.


Barrows, E., & Neely, A. (2012). Managing performance in turbulent times: Analytics and insight. Hoboken, N.J: Wiley.

Russell, L., & Russell, J. (2009). ASTD’s ultimate performance management: Training to transform performance reviews into performance partnerships. Alexandria, Virginia: ASTD Press.

Bhattacharyya, D. K. (2011). Performance management systems and strategies. Dehli: Pearson.

Sengupta, N., & Bhattacharya, M. S. (2007). International human resource management. New Delhi: Excel Books.

MacLean, J. (2001). Performance appraisal for sport and recreation managers. Champaign, Ill: Human Kinetics.

Anthony, D. (2014). Grasping the nettle. Place of publication not identified: Shieldcrest

Venkateswara, R. T. (2004). Performance management and appraisal systems: HR tools for global competitiveness. New Delhi: Response Books, a division of Sage Publications.

Tapamoy, D. (2008). Performance appraisal and management: Concepts, antecedents and implications.


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