The Importance Of Performance Management System For An Organization

1363 WordsAug 17, 20156 Pages
When determining how to develop an appropriate performance management system for an organization, there are several factors that need to be considered. It’s important to be wary of “institutional isomorphism”, which is the “tendency to of organizations in the same field to become more alike than different whether through coercion, professionalization, or a deeply felt desire to improve the sector” (Light, 2000, making nonprofits work). Light tells us that when developing a new system or program, that oftentimes we look at “best practices” or ways that like organizations have been successful, and that sometimes this can be a mistake. Engaging key stakeholder groups, not just internal staff, in the design of the system is essential to the success of the system. If the major stakeholders are involved, they are far more likely to support the system and encourage others to engage in the process in a constructive positive manner. “Limiting participation in performance management to people inside government tends to limit who will notice performance gains and the value of performance information. Only the people personally involved might know about important changes, which creates the risk that the performance management system will not outlast particular elected or appointed leadership” (Epstein, Wray, & Harding, 2006, Citizens and Partners in Performance Management). Senior management should be the key champions for the system and should have complete buy-in. Without
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