Introduction to the performance management cycle

The performance management cycle forms the foundation of an organisation’s overall performance management system. It aligns the efforts of managers, supervisors and employees to achieve organisational objectives.

The performance management cycle involves more than an annual review or appraisal meeting. It should be based on a continuous cycle, including the setting of objectives, the development of capabilities to achieve those objectives, facilitated by constant feedback, coaching and mentoring and at least one formal review or appraisal meeting. Many organisations will also link their reward and recognition process to the performance management cycle.