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Delinking Performance Management Cycle from Business Cycle


Curious to know whether any company's performance appraisal period is different from their fiscal period. For example, measuring performance under calendar year basis while the fiscal year starts from 1 Apr till 31 March.

I believe most companies have the two cycles fall within the same periiod, so that it is easy to measure one's full year contribution according to the KPI set. However, such practice calls for delay in salary review exercise. Could anyone be kind enough to share with me their practices? If you run the appraisal a different timeframe, how do you do it? how could you determine whether the employee has achieved its full year's target, say, for a saleman when you rate his performance?

Allow me to thank you all for your kind sharing.

Alice Ma

2 Responses

  1. some examples
    For any member of staff who’s KPIs don’t link DIRECTLY to revenue generation or budgetry control there are quite strong arguements for NOT using the same cycle period.
    (there is also the fact that life doesn’t end at year end; at the end of one fiscal period the foundations are already laid for the beginning of the next)

    Some organisations link the appraisal cycle to individual start dates to reduce the peaks and troughs of the PM process on managers.

    PM and appraisal is an ongoing discipline….a manager who only discusses sales performance with a sales person in the last month of the year has probably failed for the last 11 months!

    I hope this helps.


  2. It varies
    Hello Alice,

    Most companies I work with now have the two at the same time. The more progressive ones have interim reviews (either 6 monthly or quarterly) which lessens the pressure at the end of the period.

    One organisation I worked with had annual reviews in line with their fiscal period, then had a “development review” 3 months later. The idea (and it was a good one) was that discussing a person’s career development at appraisal time does not do the discussion justice as both parties are focussing on performance and salary. By having the career develpment session 3 months after the PA, both parties were more future oriented and positive.

    Food for thought . . .


    Bob Selden


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