STRATEGIC PERFORMANCE MANAGEMENT

Strategic performance management



Strategic performance management

1.0 Introduction

The world is changing. Both individuals and organizations now compete in an international marketplace. Customers want quality goods and services at competitive prices. If the produce of an organization cannot compete, it will have not market. But an organization how to improve productivities and compete with other organizations? Human resource management (HRM) should be used. HRM refer to the policies and practices needed to carry out the people, or personal, aspects of a management position, including recruiting, training, rewarding and appraising. As the most important part in whole HRM, performance management must be emphasized. Performance management is using by countries such GDP, organizations and individuals. Performance management is concerned to get the best performance from individual, but goes further in that it also aims to get the best performance from the team and from the organization as a whole.

In this assignment, I should discuss what is performance management system, what problems are included in this system and how can these problems be overcome.

1.1 Understanding team performance and strategic objectives

Performance management derives from the human resource management approach as a strategic and integrated approach to the management and development of people. The process of identifying, evaluating and developing the work performance of employees in the organization, so that the organizational goals and objectives are more effectively achieved, while at the same time benefiting employees in terms of recognition, receiving feedback, catering for work needs and offering career guidance1. This definition emphasizes that performance management is a process. We can see the illustrated following(Stone, 1991):

From this definition, we can consider that performance management is concerned with improving not only the performance of the individual, but also the performance of the team and the organization. As such, the most important thing of performance management is establish a system in which individuals and groups take responsibility for the continuous improvement of business processes, and of their own skills and contributions.

1.2 Tools And Techniques Available To Set Team Performance Targets

A manager must try to discriminate objectively between those who are contributing to the achievement of the organization's objectives and those who are not. In other word, a manager must be able to review an individual's past performance and assess strengths, level of effort and areas to reward and develop subordinates. Here the focus is on what the employee has actually done in the past, and an attempt is made to build on the employee's strengths and make improvement in other areas so that the employee can perform more effectively in the future.

1.2.1 Reward

For performance to be encouraged, rewards are necessary. When a managers reward a part of subordinates for their past work, other subordinate will recognized they must work harder in the future. Reward is also a useful tool for motivate employees, suing a system like performance-related pay, to best performance at work.

1.2.2 Development

The third objective of the performance management is development. It includes develop individual, term and organization. Performance management as a system concerns not only just ...