The Strategic Exchange – The Organizational Change Consultant Report, August 2006
Performance Management
Performance management is defining what is to be done, how it should be done and who should do it. It focuses on what the organization needs to be done rather than the individual preference of what is to be done. Everybody has to focus on what it takes for the organization to achieve its goals. According to Albert Einstein "the value of achievement lies in the achieving."
" It is an immutable law in business that words are words, explanations are explanations, promises are promises-but only performance is the reality." - Harold S. Geneen. It is to this end that the primary focus of performance management becomes measuring what is to be done. It is said "what is measured will be done" Measurement points management to the important factors necessary to achieve the organization's goals. Only then can they allocate resources to clearly defined objectives.
When organization manages performance, it forces managers to look at the broad spectrum of what makes people achieve the set targets. Therefore, they look at improving performance strategies such as development programmes , training, cross-training, setting challenging assignments, and giving regular feedback. This reduces the attention and concentration that management and supervisors place on Performance Appraisal, Annual Reviews and Evaluations. Often times, they do not like to carry out this task. Equally, employees dread this moment and sometimes wish that the "cup would pass from them. " Performance management eliminates this activity so that all parties concerned can relax and carry out their tasks and responsibilities with much more ease and confidence.
Performance management helps to create an environment of interdependent partnership, where the success of the organization depends on everyone taking responsibility for positive results. It is a responsibility of ownership, trust, loyalty and commitment of individuals and organization to excellence. However, this is only possible when everyone is well trained and fully motivated, combined with optimized processes and the appropriate technology.
How do we manage performance?
Goal Setting
Setting goals is basis for the organization's success and progress. It enables managers to achieve the targets and take corrective measures and re-define strategies in order to do so. The goals must be clearly defined. There should be no ambiguity on what it is to be achieved. They should be challenging yet not impossible to attain. It must be tied to reality of internal and external factors that impact the organization. Managers should prioritize the goals and should not set too many at once. They should be clearly communicated to employees. The focus should be on the execution of the plan and not about the plan and updating of it.
Performance Measurement
Measuring performance holds people responsible for the business process in the organization. It targets future and performance goals as well as communicate current performance. Areas to look at include operational actions that drive day-to-day business operations; how satisfied are the clients; product and service order and fulfillment; and what is the time cycle for the various activities. Measurement provides a continuous methods of detecting actual and potential problems. By doing this managers and employees can take swift action to correct them.
Disciplinary Action
Whatever disciplinary action is taken should be clear about the consequences of undesirable behaviours that do not meet the expected and communicated performance standard. The discipline should be progressive so that employees understand that performance problem or opportunity for improvement exists.
Technology
Technology transforms the work of the people and enables managers to carry out a performance improvement programme. It will surface performance measures in real-time, daily, monthly, quarterly, or just-in-time.
Performance Feedback
Giving feedback let employees know how they are doing in relation to their targets/goals. Making sure that the expectations are clear and providing frequent feedback will help them to perform most effectively. Feedback should be a part of a development plan which enables the organization to direct energy to the appropriate tasks, protect people from making poor decisions, engage them in productive performance plans, and help to improve the individual, teams, and departments.
It is a pleasure to hear from you and I look forward to answering more of your questions.
Sharon Ho–Sang
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