In information, provide little to support organisations on

In this post
module assignment I have chosen to analyse the relevance for performance
management in relation to an operational environment familiar to me and to
comment on how this may be used to drive improvements in customer service.

Performance management
is a continuous process of identifying, measuring, and developing the
performance of individuals and teams and aligning this performance with the
strategic goals of the organisation. (Auginis 2009, Chapter 1) Performance
measurement is a fundamental building block of TQM (Total Quality Management)
and total quality organisation. TQM is the system of activities directed at
achieving delighted customers, empowered employees, higher revenues and lower
costs (Juran and Gryna, 1993).

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Performance
management, when implemented well, can lead to important benefits for
organisations. Possible outcomes from effective performance management would be
clarifying job responsibilities and expectations, enhancing individual and
group productivity, developing employee capabilities to their fullest extent
through effective feedback and coaching, driving behaviour to align with the
organization’s core values, goals and strategy, providing a basis for making operational
human capital decisions (e.g., pay), improving communication between employees
and managers.

Organisations
are aware of the benefits that can be produced by a good performance management
system and, consequently, performance management has become popular worldwide.
For example, a survey of 278 organisations, about two-thirds of which are
multinational corporations, from 15 different countries, indicated that about
91% of organisations implement a formal performance management system (Cascio
2006).

Whilst there can
be no arguing that long term, sustained profit must be the goal of any
commercial organisation, there is a growing realization that if profit is the
end, then we should spend more time examining the means whereby it is achieved.
(Martin Christopher) For example, organizations with a formal and systematic
performance management systems are 51% more likely outperform others regarding
financial results and 41% more likely to outclass others regarding additional
outcomes including customer satisfaction employee retention and further
important metrics (Cascio,2006).

Historically,
organisations have always measured performance in some way through its
financial performance, be this success by profit or failure through liquation.
However, traditional performance measures, based on cost accounting
information, provide little to support organisations on their quality journey,
because they do not map process performance and improvements seen by the
customer. In a successful total quality organisation, performance will be
measured by the improvements seen by the customer as well as by the results
delivered to other stakeholders, such as the shareholders.  (Slides)

The traditional
performance management methods and particularly performance reviews were not
very effective as the process was designed to emphasise individual accountability
for past results. Traditional appraisals give short shrift to improving current
performance and developing talent for the future. That often hindered long-term
competitiveness. A solution had to be found and it wasn’t until 2002 change
started to happen. That was when Brian Jensen a HR executive of Colorcon wasn’t
bothering with annual reviews anymore. This was during his tenure as the
drugmaker’s head of global human resources. In his presentation at the Wharton
School, Jensen explained that Colorcon had found a more effective way of
reinforcing desired behaviours and managing performance. Supervisors were
giving people instant feedback, tying it to individuals’ own goals, and handing
out small weekly bonuses to employees they saw doing good things. REF