Performance management
From Wikipedia, the free encyclopedia For the performance management in the context of Information Technology, see IT performance management. This article needs additional citations for verification. Please help improve this article by adding citations to reliable sources. Unsourced material may be challenged and removed.
(October 2010)
Performance management PM! includes activities "hich ensure that goals are consistently being met in an effective and efficient manner. Performance management can focus on the performance of an organi#ation, a department, employee, or even the processes to build a product of service, as "ell as many other areas. P$ is also kno"n as a process by "hich organi#ations align their resources, systems and employees to strategic ob%ectives and priorities.&'( Performance management originated as a broad term coined by )r. *ubrey )aniels in the late '+,-s to describe a technology i.e. science imbedded in applications methods! for managing both behavior and results, t"o critical elements of "hat is kno"n as performance.&.( * formal definition of performance management, according to )aniels/ is 0a scientifically based, data1 oriented management system. It consists of three primary elements1measurement, feedback and positive reinforcement.0 &2(
Contents
' *pplication . 3enefits 2 4rgani#ational development 5 Implementation
o o o
5.' 6ong1cycle performance management 5.. 7hort1cycle performance management 5.2 $icro performance management
8 7ee also 9 :eferences , Further reading
Application
This is used most often in the "orkplace, can apply "herever people interact ; schools, churches, community meetings, sports teams, health setting, governmental agencies,social events and even political settings 1 any"here in the "orld people interact "ith their environments to produce desired effects. *rmstrong and 3aron '++<! defined it as a =strategic and integrated approach to increase the effectiveness of companies by improving the performance of the people "ho "ork in them and by developing the capabilities of teams and individual contributors.> It may be possible to get all employees to reconcile personal goals "ith organi#ational goals and increase productivity and profitability of an organi#ation using this process.&5( It can be applied by organi#ations or a single department or section inside an organi#ation, as "ell as an individual person. The performance process is appropriately named the self1propelled performance process 7PPP!.&citation needed( First, a commitment analysis must be done "here a %ob mission statement is dra"n up for each %ob. The %ob mission statement is a %ob definition in terms of purpose, customers, product and scope. The aim "ith this analysis is to determine the continuous key ob%ectives and performance standards for each %ob position. Follo"ing the commitment analysis is the "ork analysis of a particular %ob in terms of the reporting structure and %ob description. If a %ob description is not available, then a systems analysis can be done to dra" up a %ob description. The aim "ith this analysis is to determine the continuous critical ob%ectives and performance standards for each %ob.
Benefits
$anaging employee or system performance and aligning their ob%ectives facilitates the effective delivery of strategic and operational goals. 7ome proponents argue that there is a clear and immediate correlation bet"een using performance management programs or soft"are and improved business and organi#ational results.&citation needed( In the public sector, the effects of performance management systems have differed from positive to negative, suggesting that differences in the characteristics of performance management systems and the contexts into "hich they are implemented play an important role to the success or failure of performance management. &8(&9( For employee performance management, using integrated soft"are, rather than a spreadsheet based recording system, may deliver a significant return on investment through a range of direct and indirect sales benefits, operational efficiency benefits and by unlocking the latent potential in every employees "ork day i.e. the time they spend not actually doing their %ob!. 3enefits may include? )irect financial gain, @ro" sales :educe costs in the organi#ation
7top pro%ect overruns *ligns the organi#ation directly behind the AB4/s goals
)ecreases the time it takes to create strategic or operational changes by communicating the changes through a ne" set of goals
$otivated "orkforce 4ptimi#es incentive plans to specific goals for over achievement, not %ust business as usual Improves employee engagement because everyone understands ho" they are directly contributing to the organi#ations high level goals
Areate transparency in achievement of goals Cigh confidence in bonus payment process Professional development programs are better aligned directly to achieving business level goals
Improved management control Flexible, responsive to management needs )isplays data relationships
Celps audit D comply "ith legislative reEuirement 7implifies communication of strategic goals scenario planning Provides "ell documented and communicated process documentation
Organizational development
In organi#ational development 4)!, performance can be thought of as *ctual :esults vs )esired :esults. *ny discrepancy, "here *ctual is less than )esired, could constitute the performance improvement #one. Performance management and improvement can be thought of as a cycle? '. Performance planning "here goals and ob%ectives are established .. Performance coaching "here a manager intervenes to give feedback and ad%ust performance
3. Performance appraisal "here individual performance is formally documented and
feedback delivered * performance problem is any gap bet"een )esired :esults and *ctual :esults. Performance improvement is any effort targeted at closing the gap bet"een *ctual :esults and )esired :esults. 4ther organi#ational development definitions are slightly different. The U.7. 4ffice of Personnel $anagement 4P$! indicates that Performance $anagement consists of a system or process "hereby? '. Work is planned and expectations are set
.. Performance of "ork is monitored 2. 7taff ability to perform is developed and enhanced 5. Performance is rated or measured and the ratings summari#ed 8. Top performance is re"arded&,(
Implementation
Brica 4lsen notes that 0$any businesses, even those "ith "ell1made plans, fail to implement their strategy. Their problem lies in ineffectively managing their employees once their plan is in place. 7ure, they/ve conducted surveys, collected data, gone on management retreats to decide on their organi#ation/s direction11 even purchased expensive soft"are to manage their process11 but some"here their plan fails.0 &<( Performance management and performance appraisals have a significant overlap.&citation needed( In general, there are three type of performance management? long1cycle, short1cycle, and micro.
&citation needed(
Long-cycle performance management
6ong1cycle performance management is usually done on an annual, every 9 months, or Euarterly basis.&citation needed( From implementations standpoint, this area is the one that has traditionally received the most attention.&citation needed( This is so for historical reasons, as most performance management techniEuesDstyles predate use of computers.&citation needed(
Short-cycle performance management
7hort1cycle performance management "hich overlaps "ith principles of &*gile 7oft"are )evelopment(! is usually done on a "eekly, bi1"eekly, or monthly basis.&citation needed( From the implementation standpoint, this sort of management is industry1specific.&citation needed(
Micro performance management
$icro performance management is generally done on a by1minuteDhourDday basis.&citation needed(
