Performance management

Performance management is closely connected to Performance measurement. They are sometimes mistaken for each other. In careful usage, Performance Management is the larger domain and includes Performance Measurement as a component.

Performance measurement is the process of assessing progress toward achieving predetermined goals. Performance management is building on that process, adding the relevant communication and action on the progress achieved against these predetermined goals. [Bourne, M.,Franco, M. and Wilkes, J. (2003). Corporate performance management. Measuring Business Excellence 2003; 7, 3; p. 15.]

*In network performance management, (a) a set of functions that evaluate and report the behavior of telecommunications equipment and the effectiveness of the network or network element and (b) a set of various subfunctions, such as gathering statistical information, maintaining and examining historical logs, determining system performance under natural and artificial conditions, and altering system modes of operation. [Federal Standard 1037C and MIL-STD-188]

*In organizational development (OD), performance can be thought of as Actual Results vs Desired Results. Any discrepancy, where Actual is less than Desired, could constitute the performance improvement zone. Performance management and improvement can be thought of as a cycle:

#"Performance planning" where goals and objectives are established
#"Performance coaching" where a manager intervenes to give feedback and adjust performance
#"Performance appraisal" where individual performance is formally documented and feedback delivered

:A performance problem is any gap between Desired Results and Actual Results. Performance improvement is any effort targeted at closing the gap between Actual Results and Desired Results.

Other organizational development definitions are slightly different. The US Government's Office of Personnel Management indicates that Performance Management consists of a system or process whereby:

# Work is planned and expectations are set
# Performance of work is monitored
# Staff ability to perform is developed and enhanced
# Performance is rated or measured and the ratings summarized
# Top performance is rewarded [A Handbook for Measuring Employee Performance, by the US Office of Personnel Management]

*Application Performance Management (APM) refers to the discipline within systems management that focuses on monitoring and managing the performance and availability of software applications. APM can be defined as workflow and related IT tools deployed to detect, diagnose, remedy and report on application performance issues to ensure that application performance meets or exceeds end-users’ and businesses’ expectations.

*Business performance management (BPM) is a set of processes that help businesses discover efficient use of their business units, financial, human and material resources.

*Operational performance management (OPM) focus is on creating methodical and predictable ways to improve business results, or performance, across organizations.

*Integrated business planning (IBP) refers to the technologies, applications and processes of connecting the planning function across the enterprise to improve organizational alignment and financial performance.

Simply put, performance management helps organizations achieve their strategic goals. Rather than discarding the data accessibility previous systems fostered, performance management harnesses it to help ensure that an organization’s data works in service to organizational goals to provide information that is actually useful in achieving them. and focus on the Operational Networking Processes between that performance level. The main purpose of performance management is to link individual objectives and organisational objectives and bring about that individuals obey important worth for enterprise. Additionally, performance management tries to develop skills of people to achieve their capability to satisfy their ambitiousness and also increase profit of a firm.

Benefits

Managing employees performance facilitates the effective delivery of sales incentive plans. There is a clear and immediate correlation between using performance management programs or software and improved sales results.

Using integrated software, rather than a spreadsheet based recording system, may deliver a significant return on investment through a range of direct and indirect sales benefits, as well as significant administrative and overpayments savings as follows: [ [http://www.performancecentre.com PerformanceCentre.com] ]

;Direct financial gains
* Grows sales
* Eliminates over-payments
* Saves time and automates processes
* Accommodates plan changes

;Motivated sales force
* Optimises incentive plans
* On-time reporting and payments
* Controlled data distribution data
* Visible calculations
* High confidence in payment accuracy
* Sells program, improves engagement

;Improved management control
* Flexible, responsive to management needs
* Displays data relationships
* Easy to trace data calculations
* Helps audit / comply with legislative requirements
* Simple scenario planning
* Provides process documentation

References

External Links

* [http://www.performancecentre.com/ PerformanceCentre Website]
* [http://www.managementhelp.org/perf_mng/perf_mng.htm Performance Management -- Basic Concepts (at the Free Management Library)]
* [http://www.opm.gov/perform/overview.asp Performance Management (at the US Office of Personnel Management)]
* [http://www.opm.gov/perform/WPPDF/2002/HANDBOOK.PDF A Handbook for Measuring Employee Performance (at the US Office of Personnel Management)]