Performance Management
On "Performance" in Organizations
Performance management is a relatively new concept in the field of management. Performance management literature typically begins with various examinations of the term "performance." The following information describes how the term "performance" is used in this library.
Supervisors have conducted performance appraisals for years. Employees have attended training sessions for years. Organization members have worked long, hard hours for centuries. Processes such as planning, budgeting, sales, and billings have been carried out for years in organizations. However, all too often, these activities are done mostly for the sake of doing them, not for contributing directly to the preferred results of the organization.
Performance management reminds us that being busy is not the same as producing results. It reminds us that training, strong commitment, and lots of hard work alone do not result in success. The major contribution of performance management is its focus on achieving results -- providing useful products and services for customers inside and outside the organization. Performance management redirects our efforts away from busyness toward effectiveness.
Recently, organizations have faced challenges like never before. Increasing competition from businesses worldwide means that all businesses must be much more careful about the choice of strategies to remain competitive. Everyone (and everything) in the organization must be doing what they are supposed to be doing to ensure strategies are implemented effectively.
This situation has put more focus on effectiveness, ensuring that systems and processes in the organization are applied correctly to achieve results. All results across the organization must continue to be aligned to achieve the overall desired results of the organization for it to survive and thrive. Only then can it be said that the organization and its various parts are really performing.
Performance Management Applies to More than Employees
Typically, when we think of performance in organizations, we focus on the performance of employees. However, performance management should also be focused on:
1. The organization
2. Departments (computer support, administration, sales, etc.)
3. Processes (billing, budgeting, product development, financial management, etc.)
4. Programs (implementing new policies and procedures to ensure a safe workplace; or, for a nonprofit, ongoing delivery of services to a community)
5. Products or services to internal or external customers
6. Projects (automating the billing process, moving to a new building, etc.)
7. Teams or groups organized to accomplish a result for internal or external customers.
On "Performance" in Organizations
Performance management is a relatively new concept in the field of management. Performance management literature typically begins with various examinations of the term "performance." The following information describes how the term "performance" is used in this library.
Supervisors have conducted performance appraisals for years. Employees have attended training sessions for years. Organization members have worked long, hard hours for centuries. Processes such as planning, budgeting, sales, and billings have been carried out for years in organizations. However, all too often, these activities are done mostly for the sake of doing them, not for contributing directly to the preferred results of the organization.
Performance management reminds us that being busy is not the same as producing results. It reminds us that training, strong commitment, and lots of hard work alone do not result in success. The major contribution of performance management is its focus on achieving results -- providing useful products and services for customers inside and outside the organization. Performance management redirects our efforts away from busyness toward effectiveness.
Recently, organizations have faced challenges like never before. Increasing competition from businesses worldwide means that all businesses must be much more careful about the choice of strategies to remain competitive. Everyone (and everything) in the organization must be doing what they are supposed to be doing to ensure strategies are implemented effectively.
This situation has put more focus on effectiveness, ensuring that systems and processes in the organization are applied correctly to achieve results. All results across the organization must continue to be aligned to achieve the overall desired results of the organization for it to survive and thrive. Only then can it be said that the organization and its various parts are really performing.
Performance Management Applies to More than Employees
Typically, when we think of performance in organizations, we focus on the performance of employees. However, performance management should also be focused on:
1. The organization
2. Departments (computer support, administration, sales, etc.)
3. Processes (billing, budgeting, product development, financial management, etc.)
4. Programs (implementing new policies and procedures to ensure a safe workplace; or, for a nonprofit, ongoing delivery of services to a community)
5. Products or services to internal or external customers
6. Projects (automating the billing process, moving to a new building, etc.)
7. Teams or groups organized to accomplish a result for internal or external customers.