The requirement for effective performance management:
The performance management acts as a key measure to ensure that the goals and objectives are being consistently met that too in an effective and efficient manner. The management of performance focuses on the performance of the overall enterprise, all departments, employees and even the products or services. However, it does not just stop here as with performance management companies can align their resources, systems and employees which will help them attain their objectives and priorities.
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The goals of performance management programs:
Only when the employee and the system align with one another can they ensure the delivery of strategic and operational goals. Some skeptics argue that there exists a relation between the use of performance management programs or software with improved organizational results. When considering the public sector, the performance managers changes from negative to positive which suggests that the difference in the characteristics of the system, and the different context that they are implemented play an important role in success or failure of the performance management. Sometimes using an integrated software rather than a spreadsheet based recording system will help in delivering a significant return of investments through the range of direct and indirect sales benefits. Measuring the operational efficiency will help in unlocking the latent potential of the employees that work.
The benefits will include everything from the direct financial gain to a motivated workforce to the improved management. For the financial gains, it will grow sales, stop the overrunning of projects, and align the enterprise in direct manner to the CEO’s objectives. For the motivated workforce, it simply means optimization of incentive plans that defines the objective even for the over achievement and not for just the business as usual. Lastly, in the improved management control, the employees become more flexible and open to the management needs. They also display data relationships and helps audit to comply with the legislative requirement. Lastly, the process enables careful documentation and scenario planning.
Types of performance management implementation
Erica Olsen noted that in many businesses, even the ones with well made plans actually failed to implement appropriate strategy. For most, the issue lay in the ineffective management of the employees even with a business plan in place. Of course, they have conducted the necessary survey and collected the data, and also ensured management retreats to decide their organizational direction, but even with an expensive software in place, their plan can fail. Most of the time, their performance management and appraisals overlap and three types have been so far identified:
Long cycle performance management: Usually done on a annual or a biannual or quarterly basis, from implementing this management, this the area that has received the most attention. These techniques predate the use of computers and therefore do not need any expensive software.
Short cycle management performance: This overlaps with the principles of the agile software development which is mainly done on a week, monthly or bi-weekly basis. Usually this kind is industry specific.