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The Performance Appraisal Cycle

The performance appraisal cycle (see Figure 1) begins with the performance review and moves through coaching to subsequent performance reviews and additional coaching to reach the established goals. Here's a more detailed description of each of the three phases.

1. Performance Review consists of providing feedback to employees regarding their progress toward meeting objectives or goals and their skills and ability improvements. Goal setting involves “setting the course” in terms of objectives, responsibilities, and skills/ability development.



Cover of Powerful Performance Management


The performance management process is a cycle that is performed throughout the year and includes milestones like the actual performance appraisal. It is important for all participants, not just managers, to understand the nature and purpose of performance management processes and the steps of the cycle.