Understanding the performance cycle
The employee review is one part of the larger performance cycle. The performance cycle is a loop that begins with strategic level evaluation of performance relative to established goals. When new goals are formed for the next performance period they cascade downward. That is, they're broken down into smaller goals at successively lower levels of the organization. This allows each level of the hierarchy to know what they must accomplish to help the overall organization succeed. For any given manager the process begins with their own evaluation delivered by their superior.
Once they know how their performance is viewed and what's expected from their team or department they can begin to look at their employees. They'll set and publish a schedule for the completion of employee evaluations. Collect lots of data, write the reviews, conduct the evaluation discussions, hold people accountable in appropriate ways, and then follow up throughout the performance period to provide feedback and motivation. The whole process is important, but possibly the single area.Source: https://www.linkedin.com/learning/performance-review-foundations/understanding-the-performance-cycle