Performance Management in Organizations

HI6005
Management and Organizations in a Global Environment
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Contents
Management Summary......................................................................................................3
Introduction.........................................................................................................................3
Main Body...........................................................................................................................4
Conclusion..........................................................................................................................5
References........................................................................................................................12
Executive Summary
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The key purpose of this report revolves around in providing an integrable comprehension
about the general framework of performance management in the context of determining
the related school of management theory. In addition to this, positives and negatives in
the approaches to performance management will also be identified. Efforts have been
made in presenting the general framework of a performance management system with
intent of describing the management control and PM systems structure and operation in
a manner that is more holistic in comparison to literatures described earlier. For
characterizing the core subject matter mainly the works of previous researchers will be
mostly used all through this report. Moreover, current works breaking new ground have
been considered for moving the study towards the accomplishment of desirable results.
It is revealed from the analysis of different academic papers and reviews that an
important role is played by the concept of performance management system
empowering organizations to reap remarkable outcomes. This study has been initiated
as a step towards the effective fulfilment of the strategic direction of an organization in
terms of performance measurement.
Introduction
According to Yadav, Sushil and Sagar (2013), organizations are increasingly dependent
on management and decision makings that are based on facts. These activities are
enabled by the systems of performance management to help organizations in deriving
“business intelligence” from digital data that is expanding at a rapid amount.
Furthermore, performance management systems have been designed in a way for
providing its users with crucial information related to performance with the help of
effectual representations. The performance management systems developers at this end
come across technological solutions that are increasingly complicated to implement
within organizations, which presides over the needs of different information and at times
multiple stakeholders conflicting interests. According to Parida, et al., (2015), a typical
performance management system usually comprises of performance appraisal and
employee development widely perceived as the Achilles’ heel of human resource
management. With employees and managers deploring their inadequacies repeatedly, in
many organizations performance management system suffers from flaws. It is revealed
from a recent survey that out of ten employees only three agree that the performance
management system of their companies has helped them in improving performances. In
addition to this, lesser than 40 percent of employees agreed that clear performance
goals was established by their systems besides generating honest feedback or use of
technology for streamlining the process. This report study intends of making discussions
about the performance management in order to identify the relevant School
of Management Theory besides the positives and negatives in its approaches.
Main Body
What is Performance Management?
According to Deepa, (2012), performance management can be described as an
organizational approach that is continuous and systematic, widely used to improve
results with the help of decision makings based on evidences, continual learning and
focus on performance liability. It has been observed that evidences from measurement
for supporting administrative planning, funding, and operations are used by performance
management. With the help of better information, organizational officials and managers
become empowered in better comprehending the concerns of different stakeholders,
recognizing success, identifying the areas of problems and responding with suitable
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actions — for learning from experiences and applying that insight for better serving the
customers. According to Sharma and Sharma (2017), organizations concerted actions
are included with the general framework of performance management for applying the
objective information into management and policy making with intent of improving the
outcomes. Although the terms performance management and performance
measurement are interchangeably used often, an active approach is implied by
performance management, which indeed is perceived as a difference that is relatively
significant. The outputs and inputs, efficiency, and overall effectiveness have been
measured by many public and private organizations over the years. This measurement
and reporting no doubt is a crucial performance management element. However, it has
been observed that measuring and reporting by own seldom leads towards
organizational learning and improved outcomes. On the other hand, measurement data
is used by performance management for facilitating learning and improvement apart
from strengthening the focus of organizations of outcomes.
According to Jyoti and Rani (2017), with the development of information and
communications technology at an explosive rate has increased has significantly
contributed in the intensity of information within businesses. Organizations as a result of
this are in the continuous need of increased amount of data that might be utilized for
decision makings based on facts. A significant section of this data are derived from the
internal processes and systems of an organization however, an increased share of data
gets generated from resources that are external, say for example, web based platforms
and inter-organizational systems. According to Tibyan, Wibisono and Basri (2019),
increasing pressures on organizations are relatively imposed by competitive
environments, industry changes and public regulations for seeking ways of utilizing this
data into performance management. Therefore, performance management systems are
implemented by a large number of organizations for aiding them in this struggle.
Basically a performance management system revolves around an amalgamation of
different processes, metrics, and technical architecture that has been created for
optimizing both the formulation and implementation of organizational strategies.
Improvements made in technology coupled with the need of an organization for
supporting and controlling their decisions have precipitated the evolution of performance
management systems from just simply being a management accounting activities and
financial reports to progressive business intelligence systems and applications.
Objectives of Performance Management
According to Kuhil and W/Michael (2019), different researchers emphasise that the aim
of performance management revolves around the development of employees with the
help of requisite dedication and proficiencies to work towards the shared meaningful
objectives in an organizational framework. It has been observed that the general
framework for performance management has been created by taking into account the
objective to improve the performances of both individuals and organizations. This is
done through the identification of performance needs, providing feedbacks regularly and
helping the employees in developing their careers. The sole purpose of performance
management is to cultivate an organizational culture of high performance for
employees---- both as individuals and in teams. According to Brauns (2013), it is done so
that the accountability to continuously improve the business processes is jointly taken by
the employees. In addition to this, raising their individual competency bar through skills
upgradation in a framework of leadership is also aimed by performance management.
The primary focus of performance management is to enable clarity of goal with intent to
make people in getting done the right things at the right time. It might be contemplated
that performance management system’s main objective revolves around achieving the
employees complete potential in the favour of both them and that of the organizations.
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