Evaluation Of A Strategic Performance Management System

2245 Words Mar 23rd, 2016 9 Pages
Performance management has been defined as a continuous process of identifying, measuring, and developing the performance of individuals and teams and aligning performance with the strategic goals of the organisation (Aguinis, 2009). Organisations can either use strategic or operational performance management. Most organisational performance management systems are strategic in nature. They are aligned to the business strategy and support the achievement of its strategic goals (Armstrong, 2015). Armstrong (2015) suggests that a strategic approach to performance management takes a broad and long-term view of where the business is going and manages performance in ways which ensure a strategic thrust is maintained. An example of a strategic performance management system is the Balanced Scorecard. A Balanced Scorecard is a strategic planning system that is used to align an organisation’s business activities to its vision and strategy (Roussel, 2013). Once the strategies are aligned they are organised and measured using the four measures of the Balanced Scorecard. These four measures are the customer measure which measures customer satisfaction, the financial measure which measures financial requirements and performance, the internal business process measure which measures critical-to-customer process requirements and measures, and the knowledge, education and growth measure which focuses on how employees are educated, how knowledge is gained and captures and how it is used to…
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