Contingency Planning

Contingency Planning Unforeseen threats never knock on the door before their arrival. They just arrive and destroy everything that comes in their path. Contingency planning provides protection against these unforeseen threats. In the case of an organization, contingency planning covers failures of critical systems, equipment, automated processes, energy, communications, suppliers, personnel, and natural calamities. It consists of the actions taken by the organization to prepare the organization for an impending emergency. It is a management tool used to analyze the impact of potential crises so that adequate and appropriate arrangements are made in advance. It is general enough that it confers different ideas to different disaster managers and emergency personnel, depending on their circumstance and area of concern. The cost to implement and activate a contingency plan can be high, but the impact of its absence is prohibitive. Further if a small contingency is not curtailed in time then it can create a snowball effect and rapidly generate a greater crisis. In the organization, it is essential to have mechanisms that ensure constant operation. When there is an unexpected disruption, an appropriate contingency plan can make a huge difference. The definition of an optimal contingency plan is a complex problem involving diverse resources such as systems, equipment, spare parts, services, and specialized manpower etc. The contingency solution involves alternative processes and recovery strategies so that in the case of a contingency, all the necessary resources are available in order to bring the system back to normal operation using the minimum resources and in the least possible time. Chinese general Sun Tzu has said, “Plan for what is difficult while it is easy, do what is great while it is small. The difficult things in this world must be done while they are easy; the...

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...