PERFORMANCE MANAGEMENT SYSTEMS

PERFORMANCE MANAGEMENT SYSTEMS

Performance Management Systems

Introduction

People management and human development challenges remain important for organizations today, to the extent that the environmental circumstances require aligning HR strategy with objectives of the company, to promote change and development in organizations and their people. It has traditionally been the responsibility of leading HR the performance management program of the Bank to contribute to development of people and establish quality relationships between managers and partners, seeking to obtain increased productivity. Additionally, the efforts made around the issue have been significant, considering that proper management of this process allows for feedback and knows the index of assertiveness in recruitment activities, training and compensation, among others.

Discussion and Analysis

Objective:

Provide the organization a way to manage staff performance by identifying for each employee performance objectives critical priority goals related to the organization and reviewed at specified intervals.

Background

A concept of performance management system (PMS) is relatively new in management theory and practice. One of the possible definitions of this term formulated by Ferreira and Otley: PMS is “the evolving formal and informal mechanisms, processes, systems, and networks used by organizations for conveying the key objectives and goals elicited by management. Thus, for assisting the strategic process and ongoing management through analysis, planning, measurement, control, rewarding, and broadly managing performance, and for supporting and facilitating organizational learning and change”. Similar definition developed by Business Performance Management (BPM) Standards Group: performance management is “a methodology to optimize the execution of business strategy that consists of a set of integrated closed-loop, analytic processes, supported by technology that address financial as well as operational data. BPM enable a business to define measure and manage its performance against strategic goals. The core financial and operational processes of BPM include planning, consolidation and reporting, analysis and the deployment of linked key performance indicators (KPIs) throughout an organization” (Fitzgerald, 1991).

Key Elements

Performance Management System (CPM)

The term CPM appeared in the IT sector recently as a holistic concept of business performance management CPM (Corporate Performance Management) formulated by analysts at Gartner in 2001. Under the acronym, CPM understood as "union of all the processes, methodologies, metrics and systems needed to measure the performance of the organization and management of these indicators." The main emphasis in this definition is on the integration of analytic applications into a single corporate system that allows monitoring and analyzing all of the company at all necessary levels.

Business performance Management

The concept of BPM - Business Performance Management (BPM) is justifiably one of the most popular to date. Indeed, in the case of successful implementation of this method, business efficiency could be greatly enhanced. However, we should not forget that its misuse could lead to very serious consequences for the company. Obviously, that's why today, in the west the attention of all interested persons are numerous workshops, seminars and consultations, whose task is to advance the methodology. The basic idea behind all these activities is that the understanding of the leadership of the main indicators of business performance - is a prerequisite for a ...