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.
From India, Mumbai
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1On "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.
From India, Mumbai
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Hi Deepti,
It is imperative to know the culture of the organization to see what would make the people in the organization motivated enough to have an impact on their performance.
A hard-core sales-driven organization will have an incentive/commission structure such that no amount of non-monetary benefits would make sense to the people there.
On the other hand, a tech/knowledge-driven organization would be more appreciative of the efforts of people in KM and IP authorities. Here, a more non-monetary form of recognition and reward would make more sense.
Those are my initial thoughts!
Cheers,
Kanishka
From India, New Delhi
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It is imperative to know the culture of the organization to see what would make the people in the organization motivated enough to have an impact on their performance.
A hard-core sales-driven organization will have an incentive/commission structure such that no amount of non-monetary benefits would make sense to the people there.
On the other hand, a tech/knowledge-driven organization would be more appreciative of the efforts of people in KM and IP authorities. Here, a more non-monetary form of recognition and reward would make more sense.
Those are my initial thoughts!
Cheers,
Kanishka
From India, New Delhi
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Hi, Related to the performance management, I would like to know more about Performance Matrix, especially for a SME. Warm Regards, Meenakshi K. Chatta
From India, Ludhiana
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From India, Ludhiana
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Dear Meenakshi,
A Performance Matrix typically will have a range of vertices to measure performance:
- KRAs
- Technical skills/competencies
- Behavioral competencies
- Aspirations and Achievements/Initiatives
- Potential Appraisal
Again, there would be different weightages to each parameter depending on the job profile and the role being assigned to the individual. However, before this, an organization should have the basic documents/reference material ready for an objective and professional assessment, such as:
- Job Descriptions
- Role Profiles
- Competency Dictionary/Competency Definitions
- Proficiency Levels of Competencies
- Weightage Matrix/Grid for each Role
An effective Communication Program/System to educate the people on the PMS and objective and proactive Practice Managers (Reporting Officers) are essential for the effective implementation of the PMS.
Do revert for further discussion/clarifications.
Cheers,
Kanishka
From India, New Delhi
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A Performance Matrix typically will have a range of vertices to measure performance:
- KRAs
- Technical skills/competencies
- Behavioral competencies
- Aspirations and Achievements/Initiatives
- Potential Appraisal
Again, there would be different weightages to each parameter depending on the job profile and the role being assigned to the individual. However, before this, an organization should have the basic documents/reference material ready for an objective and professional assessment, such as:
- Job Descriptions
- Role Profiles
- Competency Dictionary/Competency Definitions
- Proficiency Levels of Competencies
- Weightage Matrix/Grid for each Role
An effective Communication Program/System to educate the people on the PMS and objective and proactive Practice Managers (Reporting Officers) are essential for the effective implementation of the PMS.
Do revert for further discussion/clarifications.
Cheers,
Kanishka
From India, New Delhi
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Dear Kanishka, Thanks a ton fr the info. I was wondering incase you could show a practicla example of any performance matrix done by you in thge past, if it is not a problem. warm Regards, Meenakshi
From India, Ludhiana
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From India, Ludhiana
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Dear Meenakshi,
Setting the right metrics/measures is very critical in an SME environment because of the maturity of data systems and the focus on data. It may not even make sense to have hard measures at all times, and it could even be a relevant set of competencies that can be used as a basis for appraisal and other downstream processes.
Thanks, Sourabh
From India, Mumbai
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Setting the right metrics/measures is very critical in an SME environment because of the maturity of data systems and the focus on data. It may not even make sense to have hard measures at all times, and it could even be a relevant set of competencies that can be used as a basis for appraisal and other downstream processes.
Thanks, Sourabh
From India, Mumbai
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