Implementing performance management strategies and performance measurement tools is essential for the success of any organization. In a company, the human resource department is responsible for performance management. Creating a space for good performance is strenuous, but with the right strategies, it is possible. Performance management is more than creating a conducive working environment. It entails other aspects such as effective leadership, building interpersonal relationships, and teamwork. One of the strategies for performance management is clearly defining performance goals and objectives. Incorporating performance management softwares in the measurement of progress is another strategy. Additionally, using peer reviews is essential for getting employee opinions on performance strategies. The perspectives of the balanced scorecard are also a performance management strategy.
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PERFORMANCE MEASUREMENT TOOLS IN ORGANIZATIONS
Performance measurement strategies are essential in any organization to gauge the level of growth. In small businesses, monitoring of performance is crucial for determining the resources the business needs. Therefore, managers equally capital and human resources in the business. Moreover, they determine areas whereby consolidation of labor is necessary. The performance measurement tools include the following. Firstly, the productivity test is common in manufacturing industries, whereby the output is quantifiable. Secondly, feedback facilities give the organization a view of what other parties presume about its performance. Thirdly, evaluating the achievement of set objectives is another tool. Additionally, performance appraisal is another tool by using the perspectives of the balanced scorecard.
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THE PERSPECTIVES OF THE BALANCE SCORECARD
The balanced scorecard is one of the performance measurement tools. It looks at performance from different perspectives. These perspectives are four and work together in creating value, thus leading to a return on investment and customer satisfaction. Dr. Robert Kaplan and Norton suggest that using a single dimension is ineffective. Therefore, the application of several perspectives is essential for attaining accuracy. The perspectives of the balanced scorecard are financial, customer, internal processes, and learning and growth. This is the traditional balanced scorecard. In the nine steps to success, learning and growth are denoted as organizational capacity. The purpose of this is the reflection on the internal capabilities of the organization.
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