Organizational performance is the analysis of a company’s performance as compared to its goals and objectives. It comprises real results or outputs compared with intended outputs. Organizational performance management is the process of making sure that the company resources are being properly used in pursuit of the company goals. The main purpose of managing organizational performance is to increase the organizational capability. It also helps in maintaining a competitive advantage (Armstrong, 2012).
The management of organizational performance takes place on a number of dimensions. It is a strategic approach that has to take in account the needs of multiple stakeholders and make use of business performance management systems (Armstrong, 2009).
Sink and Tuttle (1990) has given the following five dimensions for managing the organizational performance:
Creating visions for future: The organizational performance should be driven by corporate purpose and goals. Creating vision for the future provides guidelines about where the organizational activities should be headed making it easier for the managers to manage the performance. If the vision of an organization is to establish itself as the world’s best service brand, everyone in the organization should give their best for attaining the vision of the organization.
Planning: Planning is related with determining the present organizational state and developing necessary skills to attain the vision. It is related with obtaining the solutions that will work for the organization. Proper planning helps to make sure that the resources available within the organization are mobilized towards the attainment of organizational objectives. To be the best service brand in the world, the activities need to be planned accordingly.
Designing, Developing and Implementing Improvement and Interventions: The organizational behavior is based on organizational accepted principles but need to be redesigned and improved to facilitate flexibility in operations. Organizational performance is not a rigid system or rule of thumb so improvement and intervention is needed time to time. The organization should focus on the things about which something can be done so that they can get visible improvement. Only desiring to be the best will not make any organization best so the organization needs to continuously update and upgrade itself with the changing business requirements and improve and intervene the existing organizational performance to attain its ultimate objectives.
Designing, Redesigning, Developing and Implementing Measurement and Evaluation Systems: Proper measurement and evaluation system is the base for managing organizational performance. It helps to know what the organization is doing well, what it is lacking and what it needs to improve to make sure that it is heading towards the attainment of the organizational goals. It is necessary to review the measurement and evaluation system to ensure effectiveness of the employees responsible for making the desired outcomes possible.
Putting Cultural Support in Place to Reward and Reinforce Progress: The success of organization depends on the performance culture it follows. People are motivated to work in the organization whose culture aligns with their own. So the cultural aspect should be incorporated in the process of rewarding and reinforcing for managing the organizational performance. The involvement of employees in developing reward process creates positive employment relationship.
References
Armstrong, M. (2009). Armstrong’s Handbook of Performance Management. London: Kogan Page.
Armstrong, M. (2012). Armstrong’s Handbook of Human Resource Management Practice (12 ed.). London: Kogan Page.
Sink, D. S., & Tuttle, T. C. (1990). The Performance Management Question in the Organization of Future. Industrial Management, 32 (1).
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Organizational performance is the analysis of a company’s performance as compared to its goals and objectives. It comprises real results or outputs compared with intended outputs. Organizational performance management is the process of making sure that the company resources are being properly used in pursuit of the company goals. The main purpose of managing organizational performance is to increase the organizational capability. It also helps in maintaining a competitive advantage (Armstrong, 2012).
The management of organizational performance takes place on a number of dimensions. It is a strategic approach that has to take in account the needs of multiple stakeholders and make use of business performance management systems (Armstrong, 2009).
Sink and Tuttle (1990) has given the following five dimensions for managing the organizational performance:
Creating visions for future: The organizational performance should be driven by corporate purpose and goals. Creating vision for the future provides guidelines about where the organizational activities should be headed making it easier for the managers to manage the performance. If the vision of an organization is to establish itself as the world’s best service brand, everyone in the organization should give their best for attaining the vision of the organization.
Planning: Planning is related with determining the present organizational state and developing necessary skills to attain the vision. It is related with obtaining the solutions that will work for the organization. Proper planning helps to make sure that the resources available within the organization are mobilized towards the attainment of organizational objectives. To be the best service brand in the world, the activities need to be planned accordingly.
Designing, Developing and Implementing Improvement and Interventions: The organizational behavior is based on organizational accepted principles but need to be redesigned and improved to facilitate flexibility in operations. Organizational performance is not a rigid system or rule of thumb so improvement and intervention is needed time to time. The organization should focus on the things about which something can be done so that they can get visible improvement. Only desiring to be the best will not make any organization best so the organization needs to continuously update and upgrade itself with the changing business requirements and improve and intervene the existing organizational performance to attain its ultimate objectives.
Designing, Redesigning, Developing and Implementing Measurement and Evaluation Systems: Proper measurement and evaluation system is the base for managing organizational performance. It helps to know what the organization is doing well, what it is lacking and what it needs to improve to make sure that it is heading towards the attainment of the organizational goals. It is necessary to review the measurement and evaluation system to ensure effectiveness of the employees responsible for making the desired outcomes possible.
Putting Cultural Support in Place to Reward and Reinforce Progress: The success of organization depends on the performance culture it follows. People are motivated to work in the organization whose culture aligns with their own. So the cultural aspect should be incorporated in the process of rewarding and reinforcing for managing the organizational performance. The involvement of employees in developing reward process creates positive employment relationship.
References
Armstrong, M. (2009). Armstrong’s Handbook of Performance Management. London: Kogan Page.
Armstrong, M. (2012). Armstrong’s Handbook of Human Resource Management Practice (12 ed.). London: Kogan Page.
Sink, D. S., & Tuttle, T. C. (1990). The Performance Management Question in the Organization of Future. Industrial Management, 32 (1).