Effective Performance Measurement and Management Techniques

This essay provides a detailed analysis of performance measurement and management within organizations, emphasizing the importance of quantitative indicators for tracking strategic progress. It explores various theories and models, including goal-setting theory, control theory, social cognitive theory, and expectancy theory, to highlight their applications in enhancing organizational performance. The essay further discusses the role of performance measurement in quality improvement, cost management, and achieving long-term organizational goals. It also addresses the significance of aligning budgeting processes with performance measures and ensuring accountability within decentralized workforces. The conclusion underscores the importance of motivated workforce and optimized incentive plans in achieving operational goals, advocating for the use of performance management programs and software for better organizational results. Desklib provides access to this essay and a wealth of other solved assignments to aid students in their studies.

PERFORMANCE
MEASUREMENT

Contents
Introduction......................................................................................................................................1
Knowledge Theory & Models.........................................................................................................1
Development of Answer..................................................................................................................2
Conclusion.......................................................................................................................................3
References........................................................................................................................................3

Introduction
The performance measurement is about performance measures that require quantitative
indicators to track the progress against a particular strategy. They cover the wider variety of
criteria like the financial, customer, process and people measures. The management requires the
leadership team or the enterprise to meet on a regular basis and discuss the results. The measures
are about the actions where the accountability for initiatives is important and then getting the
team aligned as per the results, help in driving the company forward (Bourne & Bourne, 2012).
The leadership team needs to focus on champion the process with right methods of performance
management and ensuring the standards that are measurable. The alignment is of the budgeting
process with the strategy to put forward the financial budgeting processes that are linked to the
performance measures. The performance management is considered to be a responsibility of the
immediate supervisor with different challenges like decentralized workforce and enlarged spans
of control.
Knowledge Theory & Models
There are different theories where managers are apt to traditional theories and handling the weak
connections to distinctiveness of organization. The theories identified are the goal setting theory,
control theory, expectancy theory and social cognitive theory.
Goal Setting Theory: The theory has been proposed by Edwin Locke in 1968, effective for the
performance management. The theory is considered to be reliable, valid and useful across the
different working situations (Armstrong, 2009). The difficult goals lead to a higher performance
when they are compared to the do-your-best goals. The theory is about the individual goals and
how the employee play an important role to motivate him for a better performance. The
employees tend to follow the goals. And if the goals are not achieved, then there is a need to
improve the performance or modify the goals through making them realistic (Bobby, 2008). The
case of performance improves the results related to achieving the performance management.

Figure: Goal Theory
(Reference at: https://www.performancemagazine.org/what-is-goal-setting-theory/)
Control Theory: The feedback control is for self-regulation terms where the ongoing processes
are set with comparative processes that aims to reduce the different discrepancy standards for
behavior (Bititci, Cocca & Ates, 2016). The observed effects are for the actual behavior. The
theory was developed by Ivan Nye 1958 that is for proposing the exploiting of processes of
socialization and social learning that builds self-control and reduce the inclination to indulge in
behavior that is recognized as antisocial.

Figure: Control Theory
(Reference at: https://cyberbullying.org/social-bond-practical-way-schools-reduce-bullying)
Social Cognitive Theory: The theory highlights motivation which is generally influenced
through environment, performer thinking and what the performer is doing. The strong
performance require a major positive self- belief of efficacy along with the skills and abilities.
The theory came from Edwin B Holt & Harold Chapman. The social control proposes about the
relationship, commitment, values and the norms that encourage people to not break the law.
They tend to seek for understanding the ways which are possible to reduce likelihood of
criminality that is developing in individuals (Bolden, 2016). The wider ranges of activities are set
till there is a range that is limited by the processes of socialization and social learning.

Figure: Social Cognitive Theory
(Reference at: https://hl250w15socialcognitivetheory.weebly.com/core-conceptsconcept-
map.html)
Expectancy Theory: The theory is based on the individuals who are able to adjust the behavior
in organizations. The basis is to anticipate satisfaction for the valued goals which is set by them.
The individual work on modifying the behavior in a way which is likely to lead them for
attaining the goals (Arnaboldi, Lapsley & Steccolini, 2015). The theory is for the performance
management where the performance is mainly influenced by the expectations that concerns the
events of future. The theory is proposed by Victor Vroom in 1964.

Figure: Expectancy Theory
(Reference at: https://businessjargons.com/vrooms-expectancy-theory.html)
Development of Answer
The performance measurement requires to focus on building blocks of total quality management
and total quality organization. The organization needs to focus on the traditional performance
measures which is based on cost accounting information that provides a little support on the
quality journey. The performance measurement also help in conducting a better improvement in
quality and achieving the goals to carefully manage the long-term impacts of quality on
organization. The methods are based on assessing the quality and determine the areas
opportunities, savings and action priorities (O’Boyle & Hassan, 2014). The prevention costs and
the appraisal costs are set through implementing the planned approaches that include
development, preparation and proper program maintenance. The organization works on handling
the quality audits with external failure costs to reach and design the quality standards that are not
detected till there is a transfer to the customer. The performance measurement framework is set
with establishing the key goals, metrics, understand the performance and then initiate
improvement depending upon the requirements of the organization (Coccia, 2016).

The performance measurement in organizations are set through programs investments and the
acquisitions that are reaching the targeted results (Brown, 2014). The process of measuring
performance require to make use of statistical modeling to determine results. The performance is
based on the balanced scorecard which is for the diversity and unique requirements of different
enterprises. The performance measurement is carried out in designing, building and maintaining
the systems, materials and processes (Shields et al., 2015). The performance requires to match
with handling the secured funding which is important for the non-profit organization to improve
the performance and ensure accountability.
Conclusion
The performance management and performance measurement is important in an organization for
motivated workforce that will help in optimizing the incentive plans to specific goals for
achievement (Mester, Andrews, Allen & Chiozzi, 2018). The improved management control
helps in displaying the relationships of data and help in auditing, complying with other
legislative requirements. The managing of the employee or the system performance is mainly
through facilitating the effective delivery of operational goals, where the use of performance
management programs or software are set for better organizational results (Migdadi, Zaid,
MKSA, Yousif & Almestarihi, 2018). The employee performance management requires to work
on handling the level of performance with achieving correlation with how the different situations
occur and the language plays a major role in how the situations occur for the performers.
References
Armstrong, M., 2009. Armstrong's handbook of performance management: an evidence-based
guide to delivering high performance. Kogan Page Publishers.
Arnaboldi, M., Lapsley, I. and Steccolini, I., 2015. Performance management in the public
sector: The ultimate challenge. Financial Accountability & Management, 31(1), pp.1-22.
Bititci, U., Cocca, P. and Ates, A., 2016. Impact of visual performance management systems on
the performance management practices of organisations. International Journal of Production
Research, 54(6), pp.1571-1593.

Bobby Mackie, July (2008). Organisational Performance-Management in a Government Context:
A Literature Review. Online. Available from: http://www.focusintl.com/RBM064-0064768.pdf
[Accessed 16 October 2018]
Bolden, R., 2016. Leadership, management and organisational development. In Gower handbook
of leadership and management development (pp. 143-158). Routledge.
Bourne, M. and Bourne, P., 2012. Handbook of corporate performance management. John Wiley
& Sons.
Brown, A., 2014. Organisational paradigms and sustainability in excellence: from mechanistic
approaches to learning and innovation. International Journal of Quality and Service
Sciences, 6(2/3), pp.181-190.
Coccia, M., 2016. Radical innovations as drivers of breakthroughs: characteristics and properties
of the management of technology leading to superior organisational performance in the
discovery process of R&D labs. Technology Analysis & Strategic Management, 28(4), pp.381-
395.
Mester, B., Andrews, A., Allen, C. and Chiozzi, L., 2018. Performance management.
Migdadi, M.M., Zaid, M.K.S.A., Yousif, M. and Almestarihi, R.D., 2018. An empirical
examination of collaborative knowledge management practices and organisational performance:
the mediating roles of supply chain integration and knowledge quality. International Journal of
Business Excellence, 14(2), pp.180-211.
O'Boyle, I. and Hassan, D., 2014. Performance management and measurement in national-level
non-profit sport organisations. European Sport Management Quarterly, 14(3), pp.299-314.
Shields, J., Brown, M., Kaine, S., Dolle-Samuel, C., North-Samardzic, A., McLean, P., Johns,
R., O'Leary, P., Robinson, J. and Plimmer, G., 2015. Managing employee performance &
reward: Concepts, practices, strategies. Cambridge University Press.