Understanding Performance Management Cycle and Criteria

This article explores the performance management cycle and criteria for evaluating employee performance. It discusses the importance of competencies, behavior, and goals in enhancing performance. The article also highlights the role of training and positive working environment in improving skills and behavior. It concludes by emphasizing the significance of performance management in achieving organizational success.

INTRODUCTION
The process of developing a working environment for enhancing the performance of the
workers is called as performance management. It includes encouraging staff members for
knowing their abilities and using them to the best. Performance management is a work system
which starts when a job at the workplace is defined according to the requirement and ends
when an employee leaves the company. Effective performance management increases the
engagement among the workers which results to accomplishment of objectives effectively
(Mone, Edward M., and Manuel 2018, 30).Performance management cycle is one of the
necessary components which help organizations in accomplishing their success along with the
competitive advantages. This cycle includes planning, monitoring, reviewing and rewarding
the performance of the staff members. Apart from this, performance management cycle also
helps workers in increasing and developing their knowledge and skills according to the
requirement of the work and time. The major goal of performance management cycle is to
enhance the performance of the workers and firms by improving the work quality in the most
effective and efficient manner (Denhardt et.al. 2018, 4). The goal of present file is to
understand the performance management cycle with respect to the organizational success. In
context to this, the report includes explanation of all the stages of the cycle along with the
business practices. Along with this, the study also consists of three performance criteria:
competencies, behavior and goals.
Figure 1: Performance management cycle

Source: Nankervis, Alan R & Baird, Marian & Coffey, Jane & Shields, John, (2016).
Human resource management: strategy and practice. South Melbourne, Vic. Cengage
Learning, page 326
PERFORMANCE CRITERIA:Planning phase of cycle includes planning of competencies
needed, behavior required and goals for improving the performance of the employees. The
effective managers act by providing regular feedbacks to the workers after monitoring their
work and receive back reviews from them which results to enhance the cognitive, emotional
and social competencies of the employees (Almatrooshi, Singh and Farouk 2016, 850). The
performance criteria section of performance management cycle includes the following three
components:
Competencies:
In performance management competencies play important role as it helps in accomplishing
the organizational objectives properly. The manager of a firm determines the major core
competencies which are needed for accomplishing the performance goals (van Esch et.al.
2018, 4). Most of the time, the education of the staff is not sufficient for ensuring whether
they will able to perform well their work or not. Therefore, firms pay attention on increasing
the competencies of their employees with the help of different methods like training.

Improvement in the skills, personality, traits and motivation of the individuals help
organizations in enhancing the performance (Shields et.al. 2015, 4).
IT companies like Google and IBM conducts training session for enhancing and developing
the skills of their employees. In IT sector, it is necessary to keep workers updated with the
current information and skills for making them to work effectively on the projects and
software. Enhancement in the skills makes IT workers to perform on the latest tools and
technologies. (Hamblen 2019). Along with this, the HR managers of the firm like Walmart,
evaluates whether the skills of the marketing team is according to the requirement or not.
Learning programs are run by the firm for developing the competencies relevant to the work
of the employees which results to enhance their performance ("| PYMNTS.Com" 2019)The
below diagram represents how competencies help workers in accomplishing the objectives
related to the performance.
Figure 1: Competencies based performance
(Source: The Performance Cycle - How Competencies Are Incorporated (Part 5 Of 10
Of HRSG’S Guide To Performance Management Through Competencies)". 2019)
Behaviors:Along with the competencies, behavior also play vital role in implementing the
performance management process. Improvement in the behavior of the workers towards their
work like positivity, more involvement and initiatives lead to increase their performance.
Behavior based performance management includes paying attention to the collaboration,
culture and ethics, employee relationship building and mentoring on team. Different
parameters with respect to behavior are monitored by the managers while conducting
performance management process. These parameters are: level of job satisfaction among the
workers, turnover rate, span of control and many more (Rutledge et al. 2015, 237).

Companies like British Petroleum, TESCO, etc have strong reward system for maintaining the
positive attitude and motivated behavior of the employees ("Rewards And Benefits". 2019).
Continuous working results to decrease the interest of the workers which decreases their
performance ("Our Approach To Pay And Reward" 2019). The firms evaluate the behavior of
the staff towards the work and working environment and then implement the needed business
practice for getting best results. Organizations of mining and healthcare pays major attention
to the health and safety factor at their workplace for developing a satisfactory and positive
attitude among the staff. Stress-free and safe working environment makes workers to perform
higher for the growth and development of their company.
Results/Goals: Companies evaluate the performance of the workers on the basis of goals
they have achieved. Along with this, result based performance management is used by the
firms for increasing the focus of staff members on their task towards the accomplishment of
vision, values and mission. The performance criteria of result motivate employees to enhance
their contribution in the work which directly or indirectly increases their performance.
( Lawrie et.al. 2015, 367)
This performance criterion is usually used in the educational sector for making teachers to
work effectively for accomplishing the goals set by the educational institutes (PALASAI,
SIRISOPONSILP and CHANDRACHAI 2017, 61).Goal oriented strategy makes facilities to
complete their syllabus properly by performing effectively. The educational sector tracks the
achievements against the objectives for identifying the corrective action required for
enhancing the performance. The below diagram represents the result-based performance
management process which is used by the educational sectors for accomplishing the vision,
mission and values.
Figure 2: Result based management

(Source: “Results-based Performance Management System (RPMS)” . 2019)
Thus, from the above it is clear that all the three criteria help companies in enhancing and
evaluating the performance of their workers. All the three criteria lead to improve and
enhance the personality, attitude, core competencies and traits of the workers which results to
enhance their performance. The performance management cycle evaluates the performance of
staff members on the basis of these three criteria and help companies in taking appropriate
action according to the requirement (Nankervis et.al. 2016, 324).
By enhancing the skills and behavior of the workers with the help of positive and
ethical working environment and training sessions, the firms can improve their performance
effectively. Different firm takes different action for enhancing the skills, behavior and
accomplishing the goals of performance enhancement (Tovey,Uren, and Neroli 2015, 51).
CONCLUSION
From the above study, it is concluded that performance management cycle model help
companies in evaluating the performance of their workers. With the help of this cycle, the
firms are able to identify in which area their employees are lacking and need improvement for
enhancing their performance. The planning phase of the cycle allows managers to plan which
competencies and what behavior is required for the particular area. It also helps in setting
goals which need to be achieved via the cycle. Actions are taken by the superiors for

accomplishing the set objectives of performance management. Regular monitoring of the staff
members helps managers in evaluating the areas where staff need enhancement like skills,
motivation, working environment, etc. The three performance criteria help companies in
evaluating the performance which are: competencies, behavior and goals. The competency-
based performance management includes enhancement of different skills among the workers
which is required for completing the work and enhancing the performance. On the other hand,
behavioral based performance criteria make firms to focus on enhancing the positive attitude
of their staff towards the work. In the end, the goal-oriented performance criteria motivate
workers to pay their attention on the vision, values and organizational objectives instead of
their skills and behavior. All the three criteria help in enhancing the performance of the
employees at the workplace.

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