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Performance Management By Peter Anyebe (http://www.linkedin.com/pub/peter-anyebe/17/292/589) The right work force , In the right environment,  Delivering profitable business growth. We have followed Ralph Christensen to define the goal of Performance Management, PM in the following three, 3 phrases: We have also identified the following three, 3 types of Value: ,[object Object]
Organisational Value, ROI
Business Environment, EB     C     ROI1.02   1001.04   501.07   301.11   201.22   102.0     33.0     25.0     1.5                1   C  =            1 – 1/X,                             ROI = 2X – 1        C = Character of Consistency        ROI = Return on InvestmentThen we found the following relationship between the factors C and ROI: Given the factor-C therefore, the factor-ROI would be determined automatically. This relationship enables us to put Labour on the shelf like other commodities. This means that entrepreneurs can decide the ROI they wish to have at the planning stage of their business.                                                                                                                                                     Moreover, organizations can improve on ROI by optimizing the factor-C. It is people who make ROI. Specifically, we follow the Pareto Principle or 80-20 Rule to identify the 20%ters as the livewire of the organization. By this principle, 80% of the work in most organizations is done by 20% of the personnel. Performance Management, PM would therefore aim to make 20%ters. It would aim to create the enabling environment in which the 80%ters play catch-up with the 20%ters.  This can be achieved when Talent is central to PM, being the engine behind the creation of all value. When we leverage on talent, we can expect to win in the market place. Moreover, talent can now be learned. We have suggested the following two, 2 techniques for this purpose: ,[object Object]
The Organizational Kit, Org-KTalent is fully developed when people perform at task by the standard procedure. The DS outlines the standard procedure for the performance at task. And the Org-K is a systematic reduction of Jobs into Activities, Duties, Tasks, and the derivation of the Standard Procedure for the performance at each of these tasks. When these are used in the following analyses, the 80%ters have the opportunity to catch-on with the 20%ters: ,[object Object]
Performance Appraisal
Skill Gaps          EBPF   =            ,   F ≥ 1           EBG F = Stress (Performance Index)EB = Business EnvironmentP = Personal EnvironmentG = Organisational Environment In this case performance is appraised as the amount of stress suffered in the creation of ROI. Formally:                                                                                                                                                                ROIEEB   =             ,   EB  ≥ 1             ROIA        EB = Business Environment       ROIE = Expected Return on Investment       ROIA  = Observed Return on InvestmentThe Business Environment, EB is evaluated on the following model: Although given the factor-C, ROI is determined automatically, this is subject to the Business Environment, EB which is evaluated in the following four, 4 steps:    ,[object Object]

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Performance Management