Definition of Performance Management Performance management is a way of systematically managing people for innovation, goal focus, productivity and satisfaction. It is a goal congruent win- win strategy. Its main objective is to ensure success to all managees i.e., all task teams who believe in its process, its approach and implementation with sincerity and commitment. The managees success is reflected in organizations’ bottom line in terms of achieving its planned goals. Performance management is an endless spiral, which links several processes such as performance planning, managing performance throughout the year, taking stock of managees performance and potential. Also it includes recognizing and rewarding success at the end of the year. Performance management links these processes in such a way that an individual managees performance is always oriented towards achieving organizational goals. Performance management creates positive goal oriented task motivation and aims at reducing intra-organizational conflict. It is realized that organizations Continue reading
Performance Management
Factors Affecting Organizational Performance
In this uncertain economic and social climate there are many factors that affect the organizational performance. The most essential factors affecting organizational performance are Leadership, Motivation, Organisational Culture and Knowledge Management. 1. Leadership Leadership is the prime factor affecting the success or failure of organisations. It is the process in which one individual exerts influence over others. Leadership is a process that enables a person to influence others to achieve a goal and directs an organisation to become rational and consistent. In organisations where there is faith in the leaders, employees will look towards the leaders for almost everything. During drastic change in times, employees will perceive leadership as supportive, concerned and committed to their welfare, while at the same time recognizing that tough decisions need to be made. True leadership states that leadership skills can be mastered by people who wish to become leaders. The two very important components Continue reading
Wage Issues under Collective Bargaining
Almost all contract negotiations pivot upon, and most grievances and arbitration procedures thus ultimately deal with, four major areas : (1) wages and issues that can be directly related to wages; (2) employee benefits or economic “fringe” supplements to the basic wage rate; (3) “institutional” issues that deal with the rights and duties of employers and trade unions; and (4) “administrative” clauses that treat such subjects as work rules and job tenure. Probably no issues under collective bargaining continue to give rise to more difficult problems than do wages and wage-related subjects. When negotiations reach a stalemate, they frequently do so because management and trade union representatives are not able to find a formula to resolve wage disputes. And wage controversies are, for that matter, by far the leading overt cause of strikes; Over the past decade, for example, they have accounted for over 40 percent of all such work Continue reading
Uses of Performance Appraisal
Performance Appraisal (PA) can be described as a formal process of assessment and evaluation of the employees on an individual as well as group level. The word “formal” is crucial, as it is important that the managers or supervisors review the worker or individual on a periodic basis. Even though, performance appraisal is only an element of performance management, it is very crucial for the success of performance management as it directly relates to the strategic plan set by the organisation. It is critical to evaluate team performance in many organisations where teams exist but performance appraisal in most companies concentrates on individuals. As emphasized, achievements, objectives and strategic plans set for development can be examined and evaluated by an effective performance appraisal system. Although performance appraisal is somewhat considered as negative, unpopular and managers try to avoid the efficiency it provides. Not many Employers like conducting performance appraisal and Continue reading
Key Performance Indicators (KPIs) – Meaning and Types
Key Performance Indicators are a type of performance measurement tool. It allows management to measure the performance of a company in a certain area such as profitability. KPIs can help a team to work together to achieve a common set of measurable goals, and provide a very quick way of seeing the actual performance of a goal or strategic objective. Key Performance Indicators are mostly use to monitor an operation or to measure focusing in the aspects of organizational performance which are most critical for an organization current and future success. Key Performance Indicators (KPIs) are used in order to assess the company’s performance in their business units, division, departments and employees. It is very helpful in providing evidence that certain results have or have not been achieved, enable achievement of intended outputs, outcomes, goals and objectives to be mad by decision makers, help in perceiving differences, improvements or developments Continue reading
Organizational Performance – Meaning, Definition and Measures
Managers are concerned with organizational performance–the accumulated end results of all the organization’s work processes and activities. It’s a complex but important concept, and managers need to understand the factors that contribute to high organizational performance. After all, they don’t want (or intend) to manage their way to mediocre performance. They want their organizations, work units, or work groups to achieve high levels of performance, no matter what mission, strategies, or goals are being pursued. Managers measure and control organizational performance because it leads to better asset management, to an increased ability to provide customer value, and to improved measures of organizational knowledge. In addition, measures of organizational performance do have an impact on an organization’s reputation. Managers at high-performing companies do–they manage the organizational assets in ways that exploit their value. Asset management is the process of acquiring, managing, renewing, and disposing of assets as needed, and of designing Continue reading