How to Build an Effective Performance Management Cycle

How to Build an Effective Performance Management Cycle

According to the Gallup State of the American Workplace study, only 22% of employees are engaged and thriving.?

Active and thriving employees are more likely to maintain strong work performance, even during difficult times. This means that 78% of the workforce could do better work if only their organization had the correct type of management process.

What is Performance Management?

Performance Management is a systematic communication process. More so than yearly, semi-annually, or quarterly performance reviews.

Performance Management Framework for Success

  1. Precise Feedback - Don't give vague feedback. Aim to provide specific and actionable feedback.
  2. Kind Regards - Implement an open arms policy to show your employees that they can communicate whatever they want.?
  3. Problem-Solving Technique - Encourage open communication to avert unsolved problems… and potential surprises.

The Four Phases of a Performance Management Cycle

1. Plan - Make the plan as detailed as possible, and avoid using ambiguous language. Ask yourself these questions to help you plan an effective performance management plan.

  • What are the objectives of the program?
  • How can the program be made to blend in with daily work assignments?
  • How does each part contribute to the company's success??
  • How can we create a great reward system?

For optimum results, involve your Employees in the Process, and consider your employees' point of view.?

2. Monitoring - During this phase of the performance management cycle, an employee also takes on some training. Or they undergo other parts of the development plan for the period.

Then, the manager's role is to ensure that support and resources are available. This enables the employee to carry out the work according to the plan. Ask yourself these questions to help you plan an effective performance management plan.

  • What are you most proud of over this period??
  • Are we on track to hit our goals? Why or why not?
  • What is getting in the way of hitting our goals??
  • Do we need to revise our goals based on roadblocks?
  • How can I help you hit these goals or shoot past them?
  • How would you say your performance compares to this time previous?

3. Review - A vital part of a review is performance assessment and feedback. In addition to a self-assessment, employees may want to consider doing a 360° feedback process, including input from their peers and manager.

The review is also the time to discuss the employee's future development opportunities. It is not simply a critique of what happened, but the accomplishment, what challenges occurred, and what the roadmap should be for the future.?

4. Rewarding - Good work should be recognized.

These are the most common ways to reward an employee:

  • Salary Increases
  • Extra Vacation Time
  • Promotions
  • Awards
  • Bonuses


TaShona Jones

Identifies challenging departmental issues & incorporates functional practices which promote positive experiences and long-term impact! Christ-Centered Coaching & Leadership Change Future Graduate!

2 年

This is great information Deirdre E. Orr. As an HR Professional, I always found it to be more effective when my leaders had discussions with detailed development and growth strategies. To hear "Okay, this is good, nice work or the simple thank you." This often left me wondering if they thoroughly read or understood what I had given them. That being so, clear communication always is good and having a development plan in place (that is actually reviewed) is even better.

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