totally rewrite this: At the end of the performance management cycle plan, the managers need to see if the employees deserve a reward, or if they deserve a somewhat negative consequence. Rewards can go from anything like a raise, extra benefits, reward programs, and possibly promotion. However, the negative consequences that an employee could go through would be a performance improvement plan, like mentioned before. This gives the employee a chance to go through system where they can improve their performance in the organization. However, if this improvement plan doesn't work, you have a high chance of being laid-off. Another thing that could happen is a reorganization period in the company where they do major job lay-offs. Basically, what they do is pick a position that have 20 people where they really only need 15 people. So, the HR manager assesses all 20 employees and the top 15 stays, while the other 5 get let go. The other five who get let go, are allowed to choose a severance package so they are still getting paid for all the work they have put in to the organization