Hi.
Today's bite is about the performance management cycle.
I will explain what this cycle is, what its stages are,
and how to leverage it for the good of both employees
and the business.
Stay tuned.
What is the performance management cycle?
The performance management cycle
is an annually recurring phenomenon in which employees
are evaluated throughout the year.
All employees go through this cycle
starting with goal setting at the beginning of the year
followed by the monitoring of their progress,
helping them develop,
and ending with a formal evaluation afterward.
The goal of this cycle is to develop and execute
employee performance plans.
These plans help in focusing employee efforts
on achieving organizational goals, which, in turn,
helps to align employee priorities with the goals
of the organization.
The performance management cycle model that we propose
is a four-stage model: one, planning, two, monitoring,
three, developing, and four, rating and rewarding.
Let's now go through each of the stages one by one.
One, planning.
The planning phase is about setting performance expectations
for the employee.
These are often planned ahead of time
based on the company's strategy and team goals.
Usually these goals are also included
in the job description in one form or another.
It is best practiced to actively involve the employee
in this planning process as research shows
that this increases satisfaction with the performance cycle
as one's perceived fairness, usefulness,
and motivation to improve.
Employee performance plan should also be flexible,
so they can be adjusted for changing objectives
and requirements along the way.
Two, monitoring.
In the monitoring phase, the goals set in the planning phase
are actively tracked.
Monitoring involves the continuous measuring of performance
and providing feedback on progress towards the goal.
By monitoring continuously, the manager or supervisor
can correct in case of suboptimal performance
rather than finding this out at the end of the year
when it is too late.
To learn more about this, check out our article
about five tips to ace
your employee performance management process
that you can find in the video description.
Three, developing.
The professional development of the employee
plays a key role in improving performance.
As a result of active monitoring,
areas of improvement can be identified.
This can be under performance that should be corrected
or areas of superior performance in which the employee
wants to excel even further.
This can be achieved in the form of training and development
but also through challenging assignments
and other opportunities
for personal and professional growth.
Four, rating and rewarding.
Rating performance is an inevitability to determine
the added value of employees to the organization.
This is usually done
during the employee's biannual performance appraisal.
In case of continuous subpar performance,
the employee might not be the right function
or organization, and party should be goodbye.
In case of superior performance,
the employee should be recognized for their performance.
This can be through giving them praise, a raise, time-off,
recognition items, a promotion, or all of the above.
It is important to remember that performance management
is not a fully top-down process.
Rather, it is a shared responsibility between the manager
and the employees.
Emphasizing the shared responsibility
will make the whole process more effective.
The employee will be most motivated
when he or she feels involved in the process
and understands why their goals matter to their colleagues
and the rest of the organization.
This makes monitoring progress on goals much easier as well.
It is the manager's responsibility to create this buy-in
and mutual commitment to the goals
in the performance management cycle.
That's it for today's bite in which you've learned
what the performance management cycle is,
what its stages are, and how to leverage it
for the good of both employees and the business.
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I'll see you soon in our next learning bite.
(lively music)