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PM Cycle and Models

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PM Cycle and Models

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PM cycle and models

- One criticism of performance management is that it is often carried out as a rigid top-down activity rather
than as a flexible, continuous process that constantly evolves. Yet the concept of the performance
management cycle fits well with the need for such an ongoing, continuous and evolutionary process: it should
not be looked at as a once-a-year appraisal discussion, but instead should be seen as an ongoing process or
cycle.

- Stage 1 – planning

Performance planning should align to the overall objectives of the organization and be developed within the
context of the job description/ role profiles. Specific individual objectives and performance targets are defined
by having a look at the key results area and KPI’s, shared and agreed and time frames for achievement are
outlined. A shared view of performance is very important as expectations must be clearly understood by the
manager, the employee and any other stakeholders involved. By contributing to the planning phase, the
employee can offer valuable input in terms of what can and should be achieved and also is more likely to
demonstrate ownership of and commitment to the performance management process.

- Stage 2 – action
Once performance targets are agreed there will then follow a period in which the job is carried out. The degree
to which the manager is involved in supporting and guiding performance during this period will depend on the
individual and the circumstances of their job role. It is important that the manager is reasonably accessible and
can provide ongoing coaching and feedback. There also may be others who have a role in supporting the
individual in carrying out their role, such as other team members, and it is important that the manager
facilitates such support.

- Stage 3 – monitoring
As the individual carries out their job, their performance needs to be monitored to assess how they are
performing against the performance targets. This is the period where data capture is very important. This is not
just about identifying where there is a performance shortfall, but also about identifying strengths in
performance. A holistic review of an individual’s performance – one that captures information for accurate
feedback and developmental purposes – is important here. Monitoring is also very important because the
organization environment is not a static one – performance will be subject to new and changing demands, and
objectives can lose relevance or feasibility. It is important to respond to these changes in a timely way.

- Stage 4 – review
Reviews of performance should be ongoing, but there will also be more formal reviews of performance that
may or may not be linked to pay decisions. Reviews enable the manager and employee to share information on
progress towards performance targets. The aim of review is to support achievement of performance targets by
identifying any action steps required as the job is carried out. To achieve this there needs to be a full and frank
exchange of information. The manager needs to encourage upward feedback from individual employees on how
they feel they are performing and also how well they feel the manager is supporting them in achieving their
performance objectives.

The performance management cycle supports continuous improvement through an ongoing performance
review, which captures data to use to drive improved performance moving forward. That may be from the
situation of an employee underperforming who needs support to reach required standards, or it might be from
the situation of a high-performing employee who needs fresh stretching targets and opportunities in order to
grow and develop further. The performance management cycle therefore supports both the standards-
orientated and excellence-orientated approaches to performance management.
Principles of successful PM
- Clear purpose
- Visible commitment from senior management
- Ownership of line managers
- Should apply to all staff
- Corporate goals should be translated into individual goals
- Horizontal alignment
- Excellence-based approach over standard-based approach
- Forward-looking with the aim of developing people and performance
- Continuous and ongoing

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