What is the primary objective of a performance management cycle?

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Performance management cycles are designed to ensure that what employees do day to day supports the organization’s strategy by tying goals to outcomes, providing feedback, guiding development, and formally evaluating performance. This integrated approach helps everyone stay focused on shared objectives, improve capabilities over time, and make informed development and reward decisions. The idea is not just to rate people, but to align effort with goals, support ongoing improvement through feedback, allocate development where it’s needed, and document progress through a formal appraisal. While profits, simplicity, or more ratings might be seen as outcomes, they don’t capture the core purpose of a performance management cycle, which is to connect individual performance to organizational goals and to foster development accordingly.