The HR plays an important role in taking the organization to top by implementing performance management cycle or the PMC. It is a recurring phenomenon in every organization where employees are evaluated annually.

Fremont, CA: Every management strives to be at the top in the market competition and achieve organizational success. HR plays an important role in this by implementing the performance management cycle or PMC. It is a recurring phenomenon in every organization where employees are evaluated annually.

It has numerous advantages like a business can ensure its organizational goals are going forward by maximizing the output of their employees and keeps tracking the performance of every employee. It helps in revisiting their own structural goals and allows a quicker response to the changing market forces.

With the collaboration and support from the management, employees feel valued. Their skills enhance, and also they use it in a meaningful way. They also get a reward for their hard work, which in turn leads to job satisfaction.

There are four stages of PMC. Let's see what they are


Every management decision stars with planning. Planning lays the foundation of PMC. PMC, in its plans, identifies future performance goals for all employees in terms of targets, behaviors, and actions as well as a improvement plan to enhance employees' skills. Every employee's goals are set for a performance period. It helps the management to know the development and training required for the employees.


Regular monitoring helps the management to know whether the plans are being carried out in an intended manner or not. It is not an effective stage as it is done only once or twice a year. Thus, it is advised that the management should meet their employees quarterly, or if possible monthly to make the changes in plans as and when required as per the capabilities of the organization. Introducing periodic meetings are the best way to effect this stage of PMC.


After monitoring comes performance reviewing, which is done on an annual basis when the final results of an employee come. This is a collaborative phase where both managers and employees review their performance. This allows the employee to do self-assessment to see how they met their objectives or exceeded expectations or fell short of it. This is also the phase were problems or shortcomings are found out, discussed, and solutions are sought.


Rewarding is the last phase of PMC, where incentives are provided for their performance, and their contribution to the company's success is acknowledged. It is a crucial stage and should never be ignored as this phase only drives the employee motivation. When management fairly rewards its employees, they are ensuring their employees continue to strive and work hard for the company and its success. While an employee gets motivated to work harder to get more such incentives, other employees start working hard to reach that level.

After this phase, the employees and management team can decide to meet again, one final time for the year, to evaluate the performance management cycle as a whole. This brings the chance to talk about specific issues or challenges that might have taken place in the process and start talking about the goals for next.

Then, the cycle begins again.

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