PERFORMANCE MANAGEMENT

Identify and Analyze How Performance Management Contributes To Fulfill Organisational Vision, Mission and Objectives



Identify and Analyze How Performance Management Contributes To Fulfill Organisational Vision, Mission and Objectives

Introduction

Performance Management a set of management processes (planning, organization, implementation, monitoring and analysis) that allow businesses to define strategic objectives and then evaluate and manage activities to achieve their goals while making optimal use of available resources. This management system, built on the principles of cost management business (Armitstead, Louise, 2010, pp. 5). Performance management encompasses the entire spectrum of tasks in the field of strategic, financial, marketing and operational management of the company and includes the use of management techniques such as modeling strategy, balanced scorecard, activity-based planning and value analysis, budgeting and business modeling , consolidated management reporting and analysis, monitoring key performance indicators ( Key Performance indicators ), associated with the strategy. Performance management involves three main activities (in all the areas of management):

Setting Goals

Analysis of the values ??of parameters describing the organization achieve its goals, and

Control actions of managers on the results of analysis aimed at improving the future of the organization to achieve the goals (Bartol, Martin, 2003, pp. 12).

Since 1992, on performance management is very strongly influenced the development of the concept of Balanced Scorecard / balanced Scorecard. Typically, managers use balanced scorecard to organizational goals make clear to employees, to determine how to monitor the achievement of objectives and to implement a mechanism that signals the need to make to the organization of corrective actions. These steps are the same as what we can see in the concept of CPM, and as a result, the balanced scorecard is most often used as a foundation for performance management systems in an organization. Using the techniques of performance management, owners tend to bring the strategy to all levels of the organization to transform strategy into action, and metrics that measure these actions, and use the analysis to find causal relationships, which, if meaningful, can help in making informed decisions (Bartol, Martin, 2003, pp. 12).

Discussion

Introduction of the Organization

IKEA has been very thriving because of the time they spend comprehending their customers. Ingvar Kamprad founded IKEA in 1943 at the age of 17. Ingvar originally traded ballpoints, wallets, image borders, table runners, watches, and jewelry and nylon stockings through IKEA at a decreased price. Ingvar understood that he could purchase goods in bulk at a smaller cost and still sell them cheap while making a profit. IKEA's achievement has arrived from the way they offer a wide variety of well conceived furniture products at charges lower than the competitors. By keeping their goods prices low, they have been able to create a large demand for their products (Armitstead, Louise, 2010, pp. 5).

Main merit of Ingvar Kampar and he created the company - not that they got beyond the rural shed, which served as a headquarters and warehouse, and have achieved international success. According to experts, IKEA has made a revolution in the consumption of furniture: it has created a simple ...