Performance Management for Organizational Success...

Performance Management for Organizational Success Performance management in an organization includes activities which ensure that goals are consistently being met in an effective and efficient manner. It focuses on the performance of the organization, department, employees, or even the production processes which produces the product or service, as well as many other areas. It is also known as a process by which the organization aligns the resources, systems and employees to strategic objectives and priorities. An organization aspiring for success needs in place the process of performance management. Aims of the performance management in the organization are (i) to make the performance of the organization visible, (ii) to drive the management and the employees to take actions, and (iii) to provide timely feedback on the effect of the actions for taking corrective measures. Performance management highlights the visible performance gaps in the organization. It creates increased pressure on the management and the employees for improvement in the performance level. It identifies the areas of improvement in the organization. It helps the organization for sustaining the continuous improvement in quality, cost, safety, and in meeting the customer requirements. Performance management is a structured visual approach to monitoring of the organizational performance, highlighting issues and reacting to them in a timely manner. Performance management system is required in the organization for the purpose of meeting obligations to customers, employees, shareholders and other stakeholders. Collection and analyzing of data is an important necessity in the process of the performance management. Accuracy of the data for the performance indicators is necessary for the stimulation of the improvement activities in the organization. The data-improvement cycle is given below in Fig 1. Fig 1 Data improvement cycle Performance management is a tool to ensure effective management in the organization. It is the process...

Controlling – A Management Function...

Controlling – A Management Function Management function of controlling is the process whereby organization sets itself performance objectives and strives to achieve them as best it can over time. It is a method for managing the performance of the organization. It is the process oriented to verify the advancement status of the planned objectives as well as the efficacy and efficiency of the organization through the analysis of the resources, costs and proceeds. Controlling is one of the important functions of management. It pinpoints the deviations on the basis of which management can take corrective actions. Without the function of controlling, work done in the organization is not systematic and as per plans, since the inefficiencies remain undetected. For achieving the objectives and targets, it is necessary that the actual performance is assessed from time to time to ensure that what is being achieved is in conformity with the objectives and targets. This is done through the controlling function of the management. Thus, controlling as a function of management refers to the evaluation of actual performance of work against planned or standard performance and taking the corrective action, if necessary. Controlling function of the management is not to be seen as an activity of the exclusive competence of the administration area, but rather as a process which involves, at the appropriate levels of responsibilities of all the functions of the organization.  As with all processes, the controlling function is constituted by different elements which are connected to each other. These elements are (i) the structure (personnel charged of the duty of control), (ii) the tools (general accounting, data analysis, statistical analysis, budgeting, reporting), and (iii) the procedures (coordination, optimization). Different management experts have defined the function of controlling in the following way. “Control of...

Harnessing Creativity and Innovation in Organization for Excellence...

Harnessing Creativity and Innovation in Organization for Excellence  In the present day of complex and volatile global environment, an organization having rapid adaptability only succeed. The best practices of success of yesterday are no more valid and following of those practices can push the organization towards disaster. There are several examples of the organizations which became so charmed  with, or paralyzed by, the status quo that they failed to notice the winds of change and faded into oblivion. A successful organization of today is aware that the work processes are changing at a much faster pace these days and it has to face the challenges of rapidly changing technology, globalization, uncertainty, unpredictability, and turbulence. Such organization understand the importance of harnessing creativity and innovation and knows that this activity is critical for the success of the organization in maintaining its competitive advantage as well as in its survival. Management of such organization unleash the talents of its employees and also harness all these diverse talents to yield a useful and cohesive result. Differentiating creativity and innovation Often creativity and innovation are considered synonym of each other. But these two words convey different aspects. While creativity is always been at the heart of human endeavor, innovation creates value and is recognized as central to organizational performance. Innovation is considered, quite simply, an absolute necessity for the survival of the organization. Creativity is a process of developing and expressing new ideas that are likely to be useful. The process of creativity ends in an innovation. Innovation is the embodiment, combination, and or synthesis of these ideas in relevant, valued, and new products, services, processes or procedures. Creativity is about the generation and sharing of ideas, while innovation is the process by which these creative ideas get implemented. The...