Organizational Performance Management System

When it comes to key performance indicators, Cabrey & Haughey (2014) note three metrics that are customarily used. Those metrics are customer satisfaction, cost reduction, and sales and/or profits. A fourth metric that is often used is employee morale. To measure the success of its change initiative, the league must measure the satisfaction of its fans, whether or not it is saving money on its legal issues, and whether or not ticket sales are increasing.

Performance management is the process a business uses to assess and determine the efficiency in achieving set objectives. A durable performance management system relies on a trusting relationship between employees and employers. When employees doubt the credibility of employers, they also distrust the results of any performance management metrics that are produced. Inconsistent feedback from management can result in poor performance and cause confusion or resentment among employees, which further leads to distrust towards the performance management reports.

Henri, Jean-Francois. (2010). The Periodic Review of Performance Indicators: An Empirical Investigation of the Dynamism of Performance Measurement Systems. European Accounting Review, 19(1), 73-96. Retrieved from https://ehis-ebscohost-com.csuglobal.idm.oclc.org/ehost/pdfviewer/pdfviewer?sid=7872c1c7-369c-4f36-9a1c-81cea4558aa7%40sessionmgr11&vid=8&hid=1

I think the three performance metrics that are important to any organizations are customer satisfaction score, employee satisfaction score cash flow, productivity and gross margin (Ops, 2012). The customer satisfaction score is a metric that is used to gage how satisfied a customer is when a service is provided or product is purchased by them. This can be tracked by performing surveys to consumers or simply mailing out a satisfaction card.

Reviewing the performance of an organization is also an important step when formulating the direction of the strategic activities. It is important to know where the strengths and weaknesses of the organisation lie, and as part of the ‘Plan –Do – Check – Act’ cycle, measurement plays a key role in quality and productivity improvement activities. The main reasons it is needed are:

What you measure is what you get” – In the journal ‘The Balanced Scorecard – Measures that drive performance’ by renowned professors, Kaplan and Norton (1992), a new management system was introduced to a peripheral perspective economic industry. Past the industry era, traditional financial performance measures such as return-on-investment and earnings-per-share were deemed no longer competent in the ever-changing market. The view of focussing on either financial or non-financial perspectives alone were regarded as one-dimensional and ignorant of other crucial factors in both the company and the market.

Competency 329.2.1: Strategic Thinking and Execution - The graduate applies strategic thinking to the challenge of executing a strategic plan and demonstrates the ability to manage strategically.

In all cases, I will use an appraisal performance system in order to track the execution and outcome of goals. We can also use Key Performance Indicators (KPIs) that measure general economic, environmental and social performance. Finally, we can also employ a third party, objective external assessor who can also review our Company's internal and external performance

Describe the performance management process used in a company that you know about. Provide at least 3 examples. 2). Describe the performance appraisal approach. Provide at least 3 examples. 3). What are the major methods used for measuring the performance of the company's employees? Provide at least 3 examples. 4). How effective is the performance management system used in your company? Provide at 3 examples. 5). Offer suggestions for improvement and why you offer those suggestions. Provide at least 3 examples.

Performance management systems are “systems designed to identify the ways to achieve organizational goals through constant assessment and feedback leading to improvement of employee performance” (Huprish, 2008). Across all organisations, employers must ensure that the performance management systems not only exist within, but are also implemented strongly. These systems are crucial in all organisations as it can provide and sustain continual progression. Within the performance management systems framework there is what is known as ‘performance improvement’. “Performance improvement is the goal of managing performance” (Tovey, Uren and Sheldon, 2010). At first glance, one could often misconstrue that organisations expand and grow positively

Epstein & Shelton (2013), state that metrics are integral to the success of the company. In fact,

Performance management systems are important for a wide range of reasons, and can be used for multiple purposes. One of these reasons is to help make good employment decisions, such as deciding who to promote within an organization. In order to make effective promotion decisions for mid-level information technology (IT) managers, it is necessary to outline the domain that performance takes place in, which is discussed in the first section. In the next section, criterion measures for relevant performance management systems will be given that can act as predictors in the promotion process of IT managers. In the final section, a summary of the criterion will be explored regarding relevance, sensitivity, and practicality. These evaluations are

Question 1: Discuss how the issues above will have an impact on the six steps in the performance management process i.e. how can these issues be incorporated into the six steps of the performance management process – your response is to be supported by information provided in the case. (30 marks)

I have experience in performance management and understand the performance appraisal or a disciplinary process. It aims to improve organisational, functional, team and individual performances. Effective performance management measures the progress being made towards the achievement of the organisation's business objectives. It does so by planning, establishing, monitoring, reviewing and evaluating organisational, functional, team and individual performance.

Managers should ensure that selected performance measurement system fits the unique requirements and business strategy of the firm. In general, primary economic activity of the company and its performance focus should dictate the selection of performance measurement model.