Introduction
An organization is comprised of very complex and dynamic processes, coordinated by various structures and other controls. In addition, the organization is continually exchanging various resources and information with its external environment. Consequently, organizational performance management can be very complex. There are numerous results, measurements and standards to consider among the numerous levels and related areas (or domains) in the organization.
Organizations large and small, private and public, in all endeavors, face increasing pressures to improve their effectiveness. Organizations that succeed will be those that anticipate change and develop strategies in advance. This puts a premium on certain performance capabilities such as adaptability, flexibility, responsiveness, decisiveness, speed, quality, value, and customer satisfaction.
When thinking about results, measurements and standards in the organization, it helps a great deal to think of the organization as a system. This system has various aspects, including inputs, processes, outputs and outcomes. Ongoing feedback occurs among these aspects of the system. The overall system has various subsystems, e.g., financial management processes, departments, teams, employees, etc. Ongoing feedback occurs among aspects of these systems, as well as with the overall organization and its external environment.
As noted above, when looking for what results to measure, consider outputs from the system. Measure results in terms of units of performance, considering timeliness, cost, quantity or quality.
Performance Management for Employees
Performance management applies to individuals and includes recurring activities to establish organizational goals, monitor progress toward the goals, and make adjustments to achieve those goals more effectively and efficiently by setting goals, monitoring the employee’s achievement of those goals, sharing feedback with the employee, evaluating the employee’s performance, rewarding performance or firing the employee. Those recurring activities are much of what leaders and managers inherently do in their organizations — some do them far better than others.
Means of Expressing Performance Requirements
The move towards results shows that there are means of expressing performance requirements, to wit:
- Clear and Measurable Accountabilities
– Reflecting approaches to setting unambiguous targets linked to measurable outcomes for which the jobholder is explicitly answerable.
- Broad Responsibilities and Roles
– Including descriptions of the key elements of jobs expressed as areas of obligation and functional responsibility in general terms
- Objectives/Targets
– Reflecting the aims of the job and the main outputs expected of a component performer
- Main Job Activities and Tasks
– Describing the important components of jobs in terms of activity areas and duties
- Written Job Descriptions
– Explaining core responsibilities and lines of accountability
- Lists of Competences
– Statements of performance outcomes, often expressed in behavioral or output terms
Functions of Goals
The identified functions of goals are:
- Provide a standard of performance
- Provide a basis for planning and management control related to the activities of the organizations
- Provide guidelines for decision-making and justification for actions taken
- Influence the structure of the organization and help determine the nature of technology employed
- Help to develop commitment of individuals and groups to the activities of the organization
- Give an indication of what the organization is really like
- Serve as the basis for the evaluation of change and organization development
- The basis for objectives and policies of the organization
Types of Objectives
The five types of objectives as viewed by some authors of performance management:
- Routine Objectives – which represent regular duties and responsibilities that are part of a job
- Problem-solving Objectives – which are related to specific problems
- Innovative Objectives – which pertain to new ideas, services or ways of doing things
- Personal Development Objectives – which are related to an individual’s personal and professional development and growth
- Organizational Development Objectives – which are objectives for the development of the entire organization or a specific department
Characteristics of Work Goals
- Goals and objectives should be specific
- They should be defined in terms of measurable results
- Individual and organizational goals should be linked one to another
- Objectives should be reviewed periodically
- The time period for goal accomplishment should be specified
- Wherever possible, the indicator of the results should be quantifiable, otherwise, it should be at least verifiable
- Objectives should be flexible; changed as conditions warrant
- Objectives should have an accompanying plan of action for accomplishing the results
- Objectives should be assigned priority weightings
Today’s Conventional Wisdom About Goals
The so-called SMART Goals are commonly applied by numerous establishments nowadays, it stands for:
Specific or stretching
Measurable
Attainable or Achievable or Agreed or Acceptable or Assignable
Result-oriented or Realistic or Relevant
Time-bound
Activities:
Activity 1. Square Wheels One
How would you relate the picture to the result and output of the individual performance?
Activity 2.
- Suppose you are a manager of a government agency and discovered that one of your employee is not working very hard. He acts as if he is busy but actually he is only staring blankly at his computer and at the end of the day, he could not produce any output.
- How would you relate the individual output and result to this case?
References:
Books
Williams, R. S. (1998) Performance Management: Perspectives on Employee Performance, International Business Press
Zenger, John H. (1997) Making 2 + 2 = 5: Give Time to People to Perform, Irwin Professional Publishing
Websites
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