MODERN PERFORMENCE MANGAGMENT TECHNIQUES

 What is performance management.?

In any organization, they need to measure their overall and employee performance with their goals, which means the different departments/persons have a separate goal to achieve at the end of the year. so for that organization set some measurement tool that related to their organization goals we can define performances management process as:

A systematic process for improving organizational performance by developing the performance of individuals and teams by understanding and managing performance within an agreed framework of planned goals, standards, and competence requirements. (Michael Armstrong 2006)


Several modern performance management techniques...

Management by Objectives (MBO).

This concept was first initiated by Peter Drucker in 1954. It is a participative process where the goals of the organization are defined and conveyed by the management to the members of the organization with the intention to achieve each objective. There are several steps in Management by Objectives Process.



    01. Define organization goals

General objectives are enforced based on an interpretation and evaluation of what the company can and should achieve within a specified time.

    02. Define employee objectives.

Once the employees are briefed about the general objectives, plan, and strategies to follow, then adjust their targets and which goals they have to accomplish within a specific time and with what resources.

    03. Continuous monitoring performance and progress.

Monitoring the performance and progress of each employee in the organization according to their objectives.

    04. Performance evaluation.

Monitoring and evaluating the performance and progress of each employee against the established objectives.

    05.Providing feedback.

Continuous feedback is given on the results and objectives, as it enables the employees to track and make corrections to their actions.

    06. Performance appraisal

Regular review of job performance and overall contribution to the company.

Key performances Indicators (KPI)

Set of quantifiable measurements used to evaluate an organization's overall long-term performance and its strategic, financial, and operational achievements.

Balanced Scorecard (BSC)

The concept of BSC was given by Robert S. Kaplan and David P. Norton, it's strategy performance management tool that Organizations use to:

  • Communicate what they are trying to accomplish
  • Align the day-to-day work that everyone is doing with strategy
  • Prioritize projects, products, and services
  • Measure and monitor progress towards strategic targets

360-Degree appraisal.

In this process, employees receive confidential, anonymous feedback from the people who work around them. this information is then incorporated into that person's performance review.


       
             

According to my company, they do their employee preference evaluation by using key performance indicates (KPI) HR team and head of the departments set the KPI measurement for their different department that alining with that company year-end goal most of the time this KPI alining with the organization long term and short term goals all so.


Conclusion.

Performance management is one of the key elements in any organization that gives us the overall performance of an employee and the departments. for that there are 04 main methods used in the modern context it will use based on the organizational structure and needs of the organization. the international distiller is one of the companies which knows how to use KPI as a  performers management technic for their employees.


References.


Armstrong, M., 2006. PERFORMANCE MANAGEMENT. 3rd ed. Kogan Page Limited.

Mytypings.com. 2020. Modern Methods Of Performance Management - Mytypings.Com. [online] Available at:
<http://mytypings.com/modern-methods-of-performance-management/> [Accessed 12 December 2020].

Corporate Finance Institute. 2020. Management By Objectives (MBO) - Overview, Steps, Benefits. [online] Available at: 
<https://corporatefinanceinstitute.com/resources/knowledge/strategy/management-by-objectives-mbo/> [Accessed 12 December 2020].

Investopedia. 2020. Understanding Key Performance Indicators (Kpis). [online] Available at:
<https://www.investopedia.com/terms/k/kpi.asp> [Accessed 12 December 2020].

Institute, B., 2020. Balanced Scorecard Basics - Balanced Scorecard Institute. [online] Balanced Scorecard Institute. Available at: 
<https://balancedscorecard.org/bsc-basics overview/#:~:text=The%20balanced%20scorecard%20(BSC)%20is,everyone%20is%20doing%20with%20strategy> [Accessed 12 December 2020].

What is 360 degree feedback?. 2018. [video] Hudson Global.

Comments

  1. Pasan WijesekaraDecember 13, 2020 at 6:00 AM

    Managing performances always matters. need to understand the importance and act accordingly ensuring that it is being done in regular manner.

    ReplyDelete
  2. SathiyanDecember 13, 2020 at 8:09 AM

    Performance management is recently using as a motivation tool as well. Please follow the words limitation

    ReplyDelete
  3. ChanakajaDecember 13, 2020 at 8:57 AM

    Modern performance management never stops learning, rising, and improving just like the people it's built to serve.

    ReplyDelete
  4. NafeesDecember 13, 2020 at 10:19 AM

    Performance management to be done from the initial stages of employment. It should not be misunderstood with Appraisal

    ReplyDelete

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