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...