Strategic performance management involves aligning employee performance with organizational goals. It is a proactive partnership between employees and management. Performance management helps improve individual and team performance to deliver sustained organizational success. Strategic performance management provides frameworks and indicators to help formulate strategy, allow strategic insights, and inform strategic decision making. Key frameworks include the balanced scorecard and performance prism. Performance indicators should be relevant, clearly defined, and drive progress toward objectives. Targets provide measurable marks of achievement aligned with objectives. Strategic performance management is crucial for effective organizational development and growth.
In the 20th century HR is no more a departmental function. It is a core process determining the viability of your strategies. Strategies fail if they are not supported by the appropriate Human resource. Learn & Understand How.!
HR practitioners have learned to add value by becoming effective facilitators of senior team strategic planning sessions. Operationally, HR units can ensure their plans and programs support and drive strategic business: Capability Assessment, Capacity Management, SWOT-FS, Importance-Performance Analysis, Benchmarking and Best Practice studies and impact evaluation using Kirkpatrick Level 3 & 4 assessment are just some of the tools.
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Six phase program lasting about 3-5 years.
An organization can move systematically from the stage of examining managerial behavior and style to the development and implementation of an ideal strategic corporate model.
Organisational Development – An Overview
Organisational Diagnosis, Renewal and Change
OD Interventions
OD Effectiveness
OD is an effort (1) planned (2) organization wide (3)managed from the top (4) increase organization effectiveness and health through (5) planned interventions in the organization’s processes, using behavioral science knowledge.
Human resources
Changing nature of the workplace
Global markets
Accelerated rate of change
better quality of work.
It creates higher job satisfaction
Team work is improved and encouraged
It finds better solution for conflicts
Commitment to objectives
Increases the willingness to change
Absenteeism is reduced.
Turnover is lower
In the 20th century HR is no more a departmental function. It is a core process determining the viability of your strategies. Strategies fail if they are not supported by the appropriate Human resource. Learn & Understand How.!
HR practitioners have learned to add value by becoming effective facilitators of senior team strategic planning sessions. Operationally, HR units can ensure their plans and programs support and drive strategic business: Capability Assessment, Capacity Management, SWOT-FS, Importance-Performance Analysis, Benchmarking and Best Practice studies and impact evaluation using Kirkpatrick Level 3 & 4 assessment are just some of the tools.
Grid organizational development - comprehensive OD interventions - Organiza...manumelwin
Designed by Robert R. Blake and Jane S. Mouton.
Six phase program lasting about 3-5 years.
An organization can move systematically from the stage of examining managerial behavior and style to the development and implementation of an ideal strategic corporate model.
Organisational Development – An Overview
Organisational Diagnosis, Renewal and Change
OD Interventions
OD Effectiveness
OD is an effort (1) planned (2) organization wide (3)managed from the top (4) increase organization effectiveness and health through (5) planned interventions in the organization’s processes, using behavioral science knowledge.
Human resources
Changing nature of the workplace
Global markets
Accelerated rate of change
better quality of work.
It creates higher job satisfaction
Team work is improved and encouraged
It finds better solution for conflicts
Commitment to objectives
Increases the willingness to change
Absenteeism is reduced.
Turnover is lower
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These factors encompass various aspects of management, processes, and people.
Strategic Alignment: Operational excellence begins with aligning operational goals with the overall strategic objectives of the organization. This involves understanding the vision, mission, and values of the company and ensuring that operational efforts are in line with these guiding principles.
Process Optimization: Optimizing operational processes is crucial for achieving excellence. This includes streamlining workflows, eliminating waste, reducing bottlenecks, and improving efficiency. Organizations often employ methodologies such as Lean, Six Sigma, or Total Quality Management to drive process improvement initiatives.
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Government can and does provide quality performance in management. One way is through the use of the Baldrige Criteria for Performance Excellence and see some of the national stars from around the nation.
Set of decision and actions resulting in formulating and implementation of strategies designed to achieve the objectives of an organization.
Art & science of formulating, implementing, and evaluating, cross-functional decisions that enable an organization to achieve its objectives.
this is performance management of the employees we are found there is lot of employees not satisfied with their job what they have . and we need to improve their performance management in the organization this main reason we did this study
Organizations that use a Balanced Scorecard approach tend to outperform organizations without a formal approach to strategic performance measurement
- World-class companies are 159% more likely to have mature BSC in place than less successful organizations
- Among 164 publicly traded companies, those with well-deployed BSC outperformed the control group by nearly 30% (Advances in Accounting, 2008)
- Organizations using BSC outperform the other companies by about 100 percent in having everyone in the organization understand what the organization's strategy is (Norton, The Strategy-Focused Organization, 2000)
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2. “Performance management is a
proactive partnership between
employees and management that
helps employees perform at their best
and align their contributions with the
goals, values, and initiatives of the
organization”
- American Management Association
3. “Performance Management is a strategic
and integrated approach to delivering
sustained success to organizations by
improving the performance of the
people who work in them and by
developing the capabilities of teams
and individual contributors.”
- Armstrong & Baron
4. “Strategic Performance Management
encompasses methodologies, frameworks
and indicators that help organizations in the
formulation of their strategy and enable
employees to gain strategic insights which
allow them to challenge strategic
assumptions, refine strategic thinking and
inform strategic decision making and
learning.”
- Bernard Marr
6. Tools for Strategic Performance Management
i. Management by Objectives (Peter Drucker)
ii. Hoshin Kanri (Yoji Akao)
iii. Balanced Scorecard (Robert Kaplan and David Norton)
iv. Marr Balanced Scorecard (Bernard Marr)
v. Value Based Management
vi. Results Based Leadership
vii. Result Orientated Management
viii. Performance Prism
7. What is Performance Prism?
It’s a framework for performance management and
measurement which was developed to surmount
the weaknesses of balanced scorecards.
It was developed in Cranfield University, United
Kingdom. This innovation was led by Prof. Andy
Neely, Professor of Operations Strategy and
Performance Director of Cranfield’s Center for
Business Performance and Chairman of
Performance Management Association.
8. The Dilemma of Balanced Scorecards
The balanced Scorecards which was developed by
Kaplan and Norton focused on four perspectives
namely financials, customers, internal processes
in addition to learning and growth. It attempts to
use strategy as an end instead of a route. It
focuses too much on shareholders and
customers without proportionate consideration
for other stakeholders such as employees,
suppliers and regulatory agencies.
9. The Standpoint of Performance Prism
Performance Prism upholds that strategy
should not be an end. Strategy is a route
for delivering value to stakeholders.
Therefore, measures should not be
derived from strategy. Measures must be
derived from stakeholders.
10. The Performance Prism Framework
Top = Stakeholder Satisfaction
Side1 = Strategies
Side2 = Processes
Side3 = Capabilities
Bottom = Stakeholder Contribution
Source: Adapted from Andy Neely and Chris Adams, The Performance Prism
12. Modeling Strategies
In accordance with principles of performance
prism, strategies of a firm should be
crafted based on mission direction
towards satisfaction of distinct stakeholder
values.
13. Modeling Processes
The appropriate processes should be
hallmark of smoothness and well thought-
out mechanism for execution of a firm’s
strategies.
Strategy execution would definitely turn out
failure if it tries to scale flawed processes.
14. Modeling Capabilities
A firm should view its capabilities requirement
as technology, practices, infrastructure
and competencies necessary for carrying
out operations vis-à-vis the established
processes in order to generate values for
stakeholders.
15. Stakeholder Contribution
Organizations should ascertain the
contribution of each stakeholder group to
it’s success, so as to identify good
contributors, poor contributors and non-
contributors. This is necessary for
effective positioning of the firm’s
performance model.
16. Drivers for Using Performance Management
i. Advancement in Management
ii. Technology
iii. Market
iv. Competition
v. Human Resource Strategy
vi. Government
vii. Industrial Relations
viii. Organizational Restructuring
ix. Change Management
17. Using Performance Management System
Performance Standards
Performance Measurement
Quality Improvement Process
Performance Reporting
18. The Management Challenge
9 of 10 companies fail to execute strategy
i. Vision Barrier: Only 5% of workforce understands strategy
ii. People Barrier: Only 25% of managers have incentives
linked to strategy
iii. Management Barrier: 85% of executive teams spend less
than 1 hour per month discussing strategy
iv. Resource Barrier: 60% of organizations don’t link budgets
to strategy
Source: Balance Scorecard Collaborative
19. Performance Management Maturity Model
Progress
Time
Disparate Uncoordinated Approach
Individual efforts
Duplicated effort, difficult to consolidate
Time consuming, irreconcilable, possibly mistrusted
Systematic Performance Management
Single coherent database established
Key Performance data collected efficiently
Efficient reporting of performance
Effective Performance Reporting
Cohesive set of strategies
Alignment cascade throughout organisation
Clear accountability is established
Performance Management
Ownership is devolved
Objective interdependencies mapped and better understood
Decisions based on facts
Management actions changed through use of information
Performance Culture
All employees empowerment is facilitated
Widespread management by fact and process
Plans reflect organizational capability
Capability improvement aligned with strategy
Continuous improvement achieved
Source: Inphase Software
20. The Role of Technology in Performance Management
i. Increase data quality
ii. Trigger employee behaviour
iii. Enhance processes
iv. Boost Performance
v. Increase Accessibility of Data
vi. Reinforce Compliance
vii. Improve performance planning
viii. Aids in development of KPI
21. Core Issues in Performance Management
i. Goal Setting
ii. Goal Alignment
iii. Employee Competencies
iv. Measuring Performance
v. Performance Review
vi. Development Management
22. Why Should Your Organisation Implement
Performance Management?
i. Communicate vision, mission, values, objectives
ii. Provide impetus for effective organizational development
iii. Align organizational resources for growth
iv. Enhance working relationships
v. Improve management
vi. Communicate strengths and key areas for improvement
vii. Provide Support to workers
viii. Monitor organizational activities
ix. Provide feedback
23. What Employees Want From PM
i. Rational expectations
ii. Involvement in setting goals
iii. Clear evaluation criteria
iv. Proper job descriptions
v. Constructive and positive feedback
vi. Fair treatment
vii. Job and career enrichment
25. Principles of Performance Management System
i. Clarity of Purpose
ii. Focus
iii. Alignment
iv. Balance
v. Regular Refinement
vi. Robust Performance Indicators
27. Business Analysis for Performance Improvement
Identification of stated goals and objectives.
Ascertainment of the business environment.
Evaluation of stated goals and objectives in the
business environment.
Detection of fitting goals and objectives.
28. Performance Analysis
Performance analysis focuses on
measuring the gap between desired
and actual performance.
Clarified business objectives determine
requirements for desired performance.
Highlights of requirements include
organizational structure, competencies,
resources, processes, work systems
and competitiveness.
29. The Place of Learning and Development
Intervention
Learning and Development intervention can
only be applicable to gap in competencies
and behavioural traits.
The other requirements for desired
performance call for matching
intervention.
31. Performance Indicator
It’s a tool enabling the effectiveness of an operation
or organisation to be measured, and allows an
achieved result to be gauged or evaluated in
relation to a set of objectives.
Source: OECD
32. Properties of Performance Indicators
i. Relevant to the purpose, policy and practice
ii. Clearly defined
iii. Reliable
iv. Worth measuring
v. Measurable
vi. Galvanize action
vii. Reflect results of action
viii. Precisely defined as possible
ix. Readily available within a reasonable time frame
33. Advantages of Performance Indicators
i. Means of measuring organizational
progress toward set objectives.
ii. Give room for benchmarking and comparing
various units, sections, departments and
subsidiaries.
34. Disadvantages of Performance Indicators
i. Act as bad measures if not well defined
ii. Some vital indicators cant be easily measured
iii. Issuance of complexity due to number of
indicators
35. Key Performance Indicators in a Firm
These are quantifiable factors that are clearly
connected to drivers of business success in a
particular firm.
36. Criteria for Selecting KPI
i. Strong linkage to objectives
ii. They should be connected to areas of the
business that can be controlled
iii. They should be quantifiable
38. Developing Targets based on KPI
A Key Performance Indicator should drive
managerial effort towards a mark of
achievement, which is a target in accordance
with set objective.
KPI…….Reduce waste
Target……50% by end of March
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