The Management of

Performance

Page 1
 Features of an effective organization

• Every organization is effective in its own

particular way within its own particular
context
• Feature generally recognized:
- importance of defining objectives
- planning to achieve them

Page 2
 Five key characteristics of objectives

• Enable the organization to explain the whole

range of business statements in a small number of
general statements
• Allow the testing of these statements in actual
experience
• Enable behavior to be predicted
• Facilitate the examination of the soundness of
decisions while they are still being made rather
than after they fail
• Provide for performance in the future to be
improved as a result of the analysis of past
experience
Page 3
 Approaches to make organization effective

• Break organizations into the smallest possible

independent units
• Achieve ever-closer involvement with the
customer
• Minimize organizational layers
• Achieve flexibility by empowering people
• Learn to love change through a new view of
leadership at all levels
• Pursue fast-paced innovation

Page 4
 Implications for the management of
performance
• The importance of goals – measuring and
monitoring of performance in relation to goals
• The importance of competence – achieving high
performance by developing core, team and
individual levels of competence
• The importance of the value chain – achieving
revenue growth and shareholder value through
employees and customers

Page 5
 Factors affecting performance

• Personal factors – skills, competence, motivation,

commitment
• Leadership factors – quality of encouragement,
guidance and support provided be managers and
team leaders
• Team factors – quality of support provided by
colleagues
• Systems factors – system of work and facilities
provided by the organization
• Situational factors – internal and external
environmental pressures and changes
Page 6
Processes for managing performance

Page 7
 The following makes organizations, teams and
individuals perform well:

• The context of the organization

• Culture
• Functionality
• Job design (for individuals)
• Teamwork
• Organizational development
• Purpose and value statements
• Strategic management
• Human resource management

Page 8
 Organizational context

• Open systems - continually dependent upon

and influenced by their environment
• Technical or tasks aspects are interrelated with
the human aspects
• Managing performance within this context
• Concerned with managing the context, or at
least influencing it

Page 9
• External environment – constantly changing;
change performance requirements
• Internal environment – social and technical
system-constant state of change
• PM processes must help to shape this change
as well as to respond to it

Page 10
 Culture

• Glue that holds orgs together

• Dominate the internal environment
• Dictates both the behavior and the attitudes of
individuals

Page 11
 The components of organizational culture:

• Values
• Norms
• Management style

Page 12
• Values
• Beliefs in what is good for the organization,
what sort of behavior is desirable
• Reflected in how people interact, customer
care, innovation, social responsibility, how
employees are developed
• Influence both the focus of performance
management, how PM is carried out

Page 13
• Norms
• Unwritten rules that define expectations of
behavior-how managers treat individuals, how
individual relate to their managers
• Govern how PM operates

Page 14
• Management style
• Way in which managers behave and how they
exercise power and authority
• Involvement, empowerment, ownership

Page 15
 Functionality

• How organizations function-directly affects the

design and operation of PM processes
• Issue that affect PM:
- org may operate globally-controlled rigidly from
headquarters-concerned only with business plans
and achievements; centre provide guidelines on
PM but local management decides how to apply
the principle

Page 16
 Job design

• Specification of the contents, methods and

relationships of jobs to satisfy technological
and organizational requirements as well as the
social and personal requirements of the
jobholder

Page 17
Job design’s aims:
• Specify job context, role expectations and
relationships
• Satisfy requirements of the organization for
productivity, operational efficiency and quality
of product or service
• Satisfy the needs of the individual for interest,
challenge and accomplishment

Page 18
 Teamwork

• More attention should be given to PM for

teams as well as individuals

Page 19
 Organizational development

• Concerned with the planning and

implementation of programmes
• Designed to improve the effectiveness with
which an organization functions and manages
change

Page 20
 Purpose and value statements

• Statement of purpose defines overall what the

organization is setting out o do
• More outcome-oriented than a typical mission
statement
• Purpose statements defines what is to be
achieved; value statements define the behavior
expected in attaining the purpose

Page 21
 Strategic management

• The set of decisions and actions resulting in

the formulation and implementation of
strategies designed to achieve the objectives of
an organization

Page 22
 Human resource management

• Must be business-driven, focused on

improving performance by acquiring and
developing a competent, well-motivated and
committed workforce

Page 23
 High performance HRM practices:

• Harmonized terms and conditions for all staff

• Use of psychological tests in selecting all staff
• Formal system of communicating values to staff
• Deliberate development of a learning organization
• Staff being responsible for their own quality
• Formal appraisal of all staff at least annually
• Staff being informed about company performance and
prospects

Page 24