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5/12/2011 Zarmina Siraj
INTRDUCTION:
In this research paper a detail discussion would be made regarding performance mangenment,that would be covering the Aligning team goals with corporate strategy, Potential benefits and pitfall, Engaging people and developing performance, Motivation and influence., Monitoring, measuring and improving performance, in which discussion would be made about Monitoring, measuring and improving performance, Benefits of team performance meetings, facilitating effective team-review meetings and reviewing your process of team working, The benefits of appraisals, managing effective performance appraisal discussions, performance development and value, and effective evaluation
COMPANY PROFILE:
y ABOUT INFO TECH PKISTAN:
Established in 1995, InfoTech now stands as a recognized market leader in Business & Information Management Consulting, Technology Solutions Provisioning, Systems Integration and Outsourcing Services. With deep business process knowledge, highly skilled resources and collaborative working culture they are committed to delivering Performance-centric Technology Solutions for our customer to help them become high-performance businesses and governments. A decade of their alliance partnership with industry leaders like IBM, Oracle/Siebel, Microsoft, Cisco, Computer Associates, and others, provide us distinct advantages to remain as a Dependable & Trusted technology partner to our customers. y EXECUTIVE TEAM:
Naseer A. Akhtar President & CEO Nadeem A. Malik VP Strategy & Corporate Development Suresh Agarwal MD InfoTech Global Amer Khan VP Middle East & Africa Amin Shakir VP Finance & Operations M. Usman Farooq System Integration Team Lead
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Muhammad Akram Territory Manager, North
y
VISION OF COMPANY:
To remain a Trusted Technology Partner for their customers. They need to grow with their customers, locally as well as internationally. To enable their customers to sustain, grow and become high-performance businesses using their knowledge, skills & experiences. To help achieve their business goals by leveraging best-in-class ³need driven´ industry practices. The AIM is to implement ³Performance-Centric´ technology solutions using Collaborative Methodologies. Their code of business ethics is built around Corporate Governance by ³people & principles´ through well defined roles, and empowering people to perform as Responsible Corporate Citizens.
Business work:
Info tech Pakistan is involved in providing services in following ways; y y y y y y y y y y Technology Consulting Technology Infrastructure. Industry Focus Banking & Financial Sector End-2-End Infrastructure Solutions Messaging, Work-flow and Back-office Help Desk & Branch Operations Support CRM Strategy, Implementation & Integration Security Solutions Outsourcing Solutions
LEARNING OUTCOME 1:
Potential benefits and pitfalls: What is SPM? Strategic performance management is defined as: the process where steering of the organization takes place through the systematic definition of mission, strategy and objectives of the organization, making these measurable through critical success factors and key performance indicators, in order to take corrective actions to keep the organization on track. Strategic Performance Management is about implementing strategy. It¶s about driving through strategy implementation to deliver value by delivering the desired outcomes. This will always be a challenge
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Why is PM crucial? In the past two decades there has been an explosion in the amount of information collected, collated and reported on performance in local government. So, why all the fuss? The ability to manage the performance of a company is critical to its success. It enables members and officers to assess whether the organization is achieving what it set out to do, delivering VFM and making life better for its citizens. Others require this information as well ± including central government, regional assemblies and audit/inspection bodies to name but a few. Without comprehensive, objective, information about the comparative performance of a company, these people would have to rely on subjective, largely anecdotal, accounts of what you do well and the areas in which improvements could be made. Promoting Alignment
McKinsey s 7-S framework
The 7-S framework of McKinsey is a Value Based Management (VBM) model that describes how one can holistically and effectively organize a company. Together these factors determine the way in which a corporation operates.
InfoTech Pakistan v/s McKinsey s 7-S framework
Element of 7S model
Application to digital marketing team
Key issues from practice and literature
Strategy
The significance of digital marketing in influencing and supporting organizations¶ strategy
Gaining appropriate budgets and demonstrating / delivering value and ROI from budgets. Annual planning approach. Techniques for using digital marketing to impact organization strategy Techniques for aligning digital strategy with organizational and marketing strategy
Structure
The modification of organizational structure to support digital marketing.
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Integration of team with other management, marketing (corporate communications, brand marketing, direct marketing) and IT staff Use of cross-functional teams and steering groups In sourcing vs. outsourcing Campaign planning approach-integration
The development of specific processes, procedures or information systems to support digital marketing Systems
Managing/sharing customer information Managing content quality Unified reporting of digital marketing effectiveness In-house vs. external bestof-breed vs. external integrated technology solutions In sourcing vs. outsourcing
Staff
The breakdown of staff in terms of their background and characteristics such as IT vs. Marketing, use of contractors/consultants, age and sex.
Achieving senior management buyin/involvement with digital marketing Staff recruitment and retention. Virtual working Staff development and training Relates to role of digital marketing team in influencing strategy ± it is it dynamic and influential or conservative and looking for a voice
Style
Includes both the way in which key managers behave in achieving the organizations' goals and the cultural style of the organization as a whole.
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Skills Distinctive capabilities of key staff, but can be interpreted as specific skill-sets of team members.
Super ordinate goals
The guiding concepts of the digital marketing organization which are also part of shared values and culture. The internal and external perception of these goals may vary
Staff skills in specific areas: supplier selection, project management, Content management, specific emarketing approaches (SEO,PPC, affiliate marketing, e-mail marketing, online advertising) Improving the perception of the importance and effectiveness of the digital marketing team amongst senior managers and staff it works with (marketing generalists and IT)
Models and approaches
Mbo : Management by objectives (MBO) is a systematic and organized approach that allows management to focus on achievable goals and to attain the best possible results from available resources. It aims to increase organizational performance by aligning goals and subordinate objectives throughout the organization. Ideally, employees get strong input to identify their objectives, time lines for completion. EFQM Excellence Model:
. The EFQM Excellence Model is a practical framework that enables organizations to:
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y y y y
Assess where they are on the path to excellence; helping them to understand their key strengths and potential gaps in relation to their stated Vision and Mission. Provide a common vocabulary and way of thinking about the organization that facilitates the effective communication of ideas, both within and outside the organization. Integrate existing and planned initiatives, removing duplication and identifying gaps. Provide a basic structure for the organization¶s management system.
Bsc:
The balanced scorecard is a strategic planning and management system that is used extensively in business and industry, government, and nonprofit organizations worldwide to align business activities to the vision and strategy of the organization, improve internal and external communications, and monitor organization performance against strategic goals. Plainly stated, the BSC is a multi-source business performance management system based upon the most important organizational measures. These major components (measurement categories) are termed key performance indicators and include: Financial, Customer, Internal Business Processes, and Learning & Growth measures.
BPR:
Business process reengineering is the analysis and design of workflows and processes within an organization
How these are helpful to meet your organizational needs .
LEARNING OUTCOME 2:
Engaging people and developing performance Engaging the people and developing performance by awarding them different benefits is important part of strategic performance based management and term as a firm¶s power.Organizational power is the capacity to persuade a group to work toward the accomplishment of a company's organizational goals. It depends on the personality traits of the individual exercising the power. There are five types of organizational power: reward, coercive, expert, and legitimate and referent. Reward and coercive power are commonly used within organizations. However the use of these two together can decrease the power of the individuals over time. Reward Power
o
Reward power is used by offering rewards to encourage better performance from employees within the organization. Increases in salary and awards given based on things such as attendance or productivity are examples of reward power. The rewards given should be proportionate to the task or work performance the employee has completed or this type of power can backfire..
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Coercive Power
o
Coercive power relies on the management's ability to punish, threaten or discipline unacceptable behavior. The goal in using coercive power is to convince employees through fear to work toward reaching the organizational objectives. Threats of demotion, suspension or decrease in pay are examples of coercive power.
Developing people, performance and teams It is important to develop a culture where a company manages and grows business through investing the time to mentor employees to build a strong sustainable company to compete in this fast-paced competitive environment. This does not happen overnight. As stated before, to create a high performance team takes focus, drive and a lot of work, but the pay off is valuable to the company and to the employees. Having internal working relationships with a positive focus on an outcome is a key. Working relationships that do work are characterized by open and respectful communication that builds accountability and trust. These three characteristics go hand in hand. Many companies think there is not much you can do to improve the quality of communication, accountability or trust within a company and it is accepted to let things be status quo. People either possess the qualities of accountability or trust or they do not, right? Wrong. You can make a difference. These principles of working relationships are the framework within which our company's managers and employees relate to each other on the job. Without these basic principles, confusion about what an employee should or should not be doing arises. If anything is identified through the five principles of working relationships to work on to gain better communication and understanding,. 1. The Problem Resolution System. 2. Self-Perception Enhancement. 3. Bringing Mentoring to Your People. 4. Everyone Wins. Handling under-performance:
Standard
When giving feedback, particularly on poor performance, it¶s useful to know what you are benchmarking this against. If people don¶t know what is expected of them, it is very easy to get defensive. So establish the standards you expect and communicate these. You may not always need to refer to these during the feedback process, but be mindful of these as you give the feedback.
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Action
What is the action they performed? Emphasis is on their actions, not on your interpretation of it. So you are feeding back what you observed or heard, not on their intentions, their personality or their character. Limit the number of actions you comment on a level they can handle ± far better to give feedback on one key action that they can digest and build on to make a difference, than ten things which leaves the message diluted (and invariably leaves them demotivated). Because this is based on fact it is less likely to be challenged. Link back to the standard if necessary to highlight where people have exceeded or fallen short.
Impact
What impact did their actions have on the result? This can include positive or negative impact on the end result or on the process itself e.g. the amount of effort needed on their part to achieve the result, or the impact on others, etc. When giving praise it is so easy to say to someone µthat was really good, well done¶ without saying why it was good or what made the difference this time compared with previous occasions.
Development
How can they build on this for the future? Remember, the purpose of feedback is to enhance performance and motivate. So this last stage is important to determine what happens next e.g. develop to make it even better next time around, to correct a mistake or to perfect a process. Put the emphasis on what is missing rather than what is wrong ± building on strengths or positives is far more likely to engender enthusiasm. Using open questions, ask the individual how they think things can be developed or built upon. This will help to gain buy in and you may be surprised by the options they suggest. Here are the three key situations for giving feedback within the workplace. 1. 2. 3. When all is going well ± feedback and praise. Mixed performance ± feedback mixed with positive and corrective action. When all is not well ± feedback to address under-performance.
This model works equally well in all three. LEARNING OUTCOME 3: Traditional motivation models: THEORY X / THEORY Y Douglas McGregor presented the: Theory X is the traditional view of direction and control, based on these assumptions: 1. The average person inherently dislikes work and will avoid it if at all possible.
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2. As a result, most people have to be coerced, controlled and threatened if they are to put in enough effort to achieve the organization¶s goals. 3. In fact the average person prefers to be directed, avoids responsibility, isn't ambitious and simply seeks security. Theory Y, based on the integration of individual and organizational goals, assumes: 1. The physical and mental effort of work is as natural as play or rest, so the average person doesn't inherently dislike work. 2. We are capable of self-direction and self-control, so those factors don't necessarily have to come from elsewhere. 3. Our commitment to an objective is a function of the rewards for its achievement. 4. The average person learns not only to accept but to seek responsibility. 5. Most people have a capacity for imagination, ingenuity and creativity. 6. The intellectual potential of most people is under-used in modern industrial life.
HERZBERG'S MOTIVATION - HYGIENE THEORY Frederick Herzberg studied and practiced clinical psychology in Pittsburgh, where he researched the work-related motivations of thousands of employees. His findings were published in "The Motivation to Work" in 1959. He concluded that there were two types of motivation: Hygiene Factors t Motivation Factors So, once one've satisfied the Hygiene factors, providing more of them won't generate much more motivation, but lack of the Motivation Factors won't of themselves demotivate. There are clear relationships to Maslow here, but Herzberg's ideas really shaped modern thinking about reward and recognition in major companies. Maslow s hierarchy of needs Maslow has set up a hierarchy of five levels of basic needs. Beyond these needs, higher levels of needs exist. These include needs for understanding, esthetic appreciation and purely spiritual needs. In the levels of the five basic needs, the person does not feel the second need until the demands of the first have been satisfied or the third until the second has been satisfied, and so on. Maslow's basic needs are as follows: Physiological Needs Safety Needs Needs of Love, Affection and Belongingness Needs for Esteem Needs for Self-Actualization
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Expectancy and Reversal theory Expectancy Theory is based on an employee¶s beliefs:
Valence - refers to emotional orientations which people hold with respect to outcomes (rewards) ± the value the person attaches to first and second order outcomes Expectancy ± refers to employees¶ different expectations and levels of confidence about what they are capable of doing ± the belief that effort will lead to first order outcomes Instrumentality ± refers to the perception of employees whether they will actually receive what they desire, even if it has been promised by a manager ± the perceived link between first order and second order outcomes
Reversal theory There are several ways to characterize Reversal Theory. Apter (2001a; 2001b) introduces it as a theory of motivational style, a ³distinctive orientation to the world based on a fundamental psychological value ± such as achievement, love or freedom´. These motivational styles (or met motivational states) are what we refer to in everyday speech when we describe people as cheerful, affectionate, serious, and challenging and so on. They are central for any account of our mental lives. Reversal Theory gives a structural-phenomenological account of them, describing them as structures of conscious experience. Influence and persuasion y Myers-Briggs preferences
People who have a preference for sensing are immersed in the ongoing richness of sensory experience and thus seem more grounded in everyday physical reality. They tend to be concerned with what is actual, present, current, and real. As they exercise their preference for sensing, they approach situations with an eye to the facts. Thus, they often develop a good memory for detail, become accurate in working with data, and remember facts or aspects of events that did not even seem relevant at the time they occurred. Sensing types are often good at seeing the practical applications of ideas and things, and may learn best when they can first see the pragmatic side of what is being taught. For sensing types, experience speaks louder than words or theory. People who prefer sensing may: recall events as snapshots of what literally happened o solve problems by working through things thoroughly for a precise understanding o be pragmatic and look to the "bottom line"
o o
work from the facts to the big picture
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put experience first and place less trust in words and symbols o sometimes focus so much on the facts of the present or past that they miss new possibilities
o
Leading with political awareness An understanding of policy and politics is an increasingly important skill for managers, whether located in the private, public or voluntary sectors. There is a pressing need for managers to be able to work not only with the formal institutions and representatives of the state, but also across and with a diverse range of organizations. Many managers have to work with stakeholders who advocate or lobby on behalf of consumer, pressure and political groups. Other managers may have to understand and work in a complex and dynamic environment of legislation, regulation and policy advice. A globalizing world creates a range of uncertainties about world governance, national stability or local priorities which managers need to understand and to take account of, and which may have unexpected or substantial repercussions which have to be addressed. The impact of politics (both formal and informal) may vary according to the sector in which the organization operates; the degree to which it has a high and visible public profile; the sensitivity of some of its activities; and its accountability and governance structures. However, all organizations must take account of politics, and senior and strategic managers in particular must be sensitive to the interplay of politics with organizational purpose. It may also help operational managers if they have awareness of some of the key political forces acting on the organization. A range of skills for leading and managing in these environments is important for private sector managers as much as for public or voluntary sector managers, given the complex and increasingly media-visible world in which they are located. The rising interest in corporate social responsibility.
LEARNING OUTCOME 4:
Monitoring, measuring and improving performance. y Monitoring and measuring performance
It s essential that you determine the factors critical to your company s success, measure those metrics and put into place a system for continually improving performance. Here are some guidelines for helping you develop your company s process. Define Your Goals Determine the Metrics to Measure Your Company s Performance Develop Methods to Collect and Organize Data Compare Yourself to the Competition Conduct Research Understand Your Strengths and Weaknesses Focus on Customer Retention
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Team performance meetings Managers can accelerate performance in one hour per week by simply holding better weekly team meetings. Main benefits of holding such meeting are: #1: Teamwork #2: Performance Management #3: Improve Win Ratio 4: Build business acumen #5: Expand expertise #6: Create, Discover or Develop Leaders #7: React in Real Time to Changing Economy #8: Focus Performance appraisal: Managing effective performance appraisal The aim o f the Managing effect ive performance appraisal is to develop the knowledge and skills necessary to manage staff performance within a structured process, to ensure the object ives of the organizat ion are met, while developing the team and individuals to enhance their performance. The object achieved would be
y y y y y y y y y y
Understand the importance of your role as a manager of performance. Assess your leadership style and how it impacts on your team. Understand the process of performance management Assess your team to understand their motivational needs. Plan, Organize and Implement performance reviews Manage effective performance appraisals Deal with difficult appraisals Produce a plan of action for monitoring performance. Set and agree goals, with a clear understanding of expectations. Understand the golden rules for giving and receiving feedback.
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y y y y
Deal with poor performance in a positive manner to increase productivity. Know and work within the guidelines of specific areas of employment law. Work on the 10 motivational areas employees¶ desire from their managers. Understand the theory of motivation and differentiate between short term and long term motivation
FINDINGS AND RECOMMENDATIONS: Strategic Performance Management shows you how to develop a performance management programme tailored specifically to your corporate needs. What¶s more it is grounded in practical experience. By sifting the lessons and experience of organizations at all levels, the Report describes how every company can apply performance information to improve performance. It recognizes that this effort involves an integrated approach that engages leaders, the workforce, corporate culture and technology. Exclusively, this report shows you how to form an assessment of your current position to develop a practical and deliverable plan for improving your results. Whatever the current state of performance management in your organization, it shows you the way forward. Based on an extensive programme of research, Strategic Performance Management provides you with a toolkit to revitalize your performance management capability. The SPM Maturity Model ± described in detail exclusively in this report - is both a diagnostic and planning tool. It turns the research findings about companies¶ widely different success rates into a set of actionable principles and guidelines that you can apply.
CONCLUSION: Setting goals, monitoring an employee's achievement of those goals, sharing feedback with the employee, evaluating the employee's performance, rewarding the employee's performance or firing the employee. However, performance management applies to teams and organizations, as well. Organizational performance involves the recurring activities to establish organizational goals, monitor progress toward the goals, and make adjustments to achieve those goals more effectively and efficiently REFRENCES: L Kloot« - Management Accounting Research, 2000 - Elsevier The drive for reform in the public sector worldwide has focussed attention on the measurement of performance in public sector organizations. This is particularly true in local government. Local government has traditionally been concerned with measuring the delivery of primary
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RE Freeman - 1984 - mendeley.com ... Furthermore, most of the research on the stakeholder concept has taken place in four subfields: normative theories of business; corporate governance and organizational theory; corporate social responsibility and performance; and strategic management
RS Kaplan« - Harvard business review, 1996 - noppa.tkk.fi
... Communicate the Balanced Scorecard t Entire Company: At the end of one year, i ihe
management teams are comfortable jé» strategic approach, the scorecard is îiinated to the entire organization. 12 - ongoing) I Establish Individual Performance^ a: The top three layers of it ...
Strategic performance management: leveraging and measuring your intangible value drivers by Bernard Marr.p-45 Strategic and performance management of Olympic sport organisations By Jean-Loup Chappelet, Emmanuel Bayle=p=25 Strategic performance management: a managerial and behavioural approach=p 158
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doc_914912602.docx
5/12/2011 Zarmina Siraj
INTRDUCTION:
In this research paper a detail discussion would be made regarding performance mangenment,that would be covering the Aligning team goals with corporate strategy, Potential benefits and pitfall, Engaging people and developing performance, Motivation and influence., Monitoring, measuring and improving performance, in which discussion would be made about Monitoring, measuring and improving performance, Benefits of team performance meetings, facilitating effective team-review meetings and reviewing your process of team working, The benefits of appraisals, managing effective performance appraisal discussions, performance development and value, and effective evaluation
COMPANY PROFILE:
y ABOUT INFO TECH PKISTAN:
Established in 1995, InfoTech now stands as a recognized market leader in Business & Information Management Consulting, Technology Solutions Provisioning, Systems Integration and Outsourcing Services. With deep business process knowledge, highly skilled resources and collaborative working culture they are committed to delivering Performance-centric Technology Solutions for our customer to help them become high-performance businesses and governments. A decade of their alliance partnership with industry leaders like IBM, Oracle/Siebel, Microsoft, Cisco, Computer Associates, and others, provide us distinct advantages to remain as a Dependable & Trusted technology partner to our customers. y EXECUTIVE TEAM:
Naseer A. Akhtar President & CEO Nadeem A. Malik VP Strategy & Corporate Development Suresh Agarwal MD InfoTech Global Amer Khan VP Middle East & Africa Amin Shakir VP Finance & Operations M. Usman Farooq System Integration Team Lead
2|P ag e
Muhammad Akram Territory Manager, North
y
VISION OF COMPANY:
To remain a Trusted Technology Partner for their customers. They need to grow with their customers, locally as well as internationally. To enable their customers to sustain, grow and become high-performance businesses using their knowledge, skills & experiences. To help achieve their business goals by leveraging best-in-class ³need driven´ industry practices. The AIM is to implement ³Performance-Centric´ technology solutions using Collaborative Methodologies. Their code of business ethics is built around Corporate Governance by ³people & principles´ through well defined roles, and empowering people to perform as Responsible Corporate Citizens.
Business work:
Info tech Pakistan is involved in providing services in following ways; y y y y y y y y y y Technology Consulting Technology Infrastructure. Industry Focus Banking & Financial Sector End-2-End Infrastructure Solutions Messaging, Work-flow and Back-office Help Desk & Branch Operations Support CRM Strategy, Implementation & Integration Security Solutions Outsourcing Solutions
LEARNING OUTCOME 1:
Potential benefits and pitfalls: What is SPM? Strategic performance management is defined as: the process where steering of the organization takes place through the systematic definition of mission, strategy and objectives of the organization, making these measurable through critical success factors and key performance indicators, in order to take corrective actions to keep the organization on track. Strategic Performance Management is about implementing strategy. It¶s about driving through strategy implementation to deliver value by delivering the desired outcomes. This will always be a challenge
3|P ag e
Why is PM crucial? In the past two decades there has been an explosion in the amount of information collected, collated and reported on performance in local government. So, why all the fuss? The ability to manage the performance of a company is critical to its success. It enables members and officers to assess whether the organization is achieving what it set out to do, delivering VFM and making life better for its citizens. Others require this information as well ± including central government, regional assemblies and audit/inspection bodies to name but a few. Without comprehensive, objective, information about the comparative performance of a company, these people would have to rely on subjective, largely anecdotal, accounts of what you do well and the areas in which improvements could be made. Promoting Alignment
McKinsey s 7-S framework
The 7-S framework of McKinsey is a Value Based Management (VBM) model that describes how one can holistically and effectively organize a company. Together these factors determine the way in which a corporation operates.
InfoTech Pakistan v/s McKinsey s 7-S framework
Element of 7S model
Application to digital marketing team
Key issues from practice and literature
Strategy
The significance of digital marketing in influencing and supporting organizations¶ strategy
Gaining appropriate budgets and demonstrating / delivering value and ROI from budgets. Annual planning approach. Techniques for using digital marketing to impact organization strategy Techniques for aligning digital strategy with organizational and marketing strategy
Structure
The modification of organizational structure to support digital marketing.
4|P ag e
Integration of team with other management, marketing (corporate communications, brand marketing, direct marketing) and IT staff Use of cross-functional teams and steering groups In sourcing vs. outsourcing Campaign planning approach-integration
The development of specific processes, procedures or information systems to support digital marketing Systems
Managing/sharing customer information Managing content quality Unified reporting of digital marketing effectiveness In-house vs. external bestof-breed vs. external integrated technology solutions In sourcing vs. outsourcing
Staff
The breakdown of staff in terms of their background and characteristics such as IT vs. Marketing, use of contractors/consultants, age and sex.
Achieving senior management buyin/involvement with digital marketing Staff recruitment and retention. Virtual working Staff development and training Relates to role of digital marketing team in influencing strategy ± it is it dynamic and influential or conservative and looking for a voice
Style
Includes both the way in which key managers behave in achieving the organizations' goals and the cultural style of the organization as a whole.
5|P ag e
Skills Distinctive capabilities of key staff, but can be interpreted as specific skill-sets of team members.
Super ordinate goals
The guiding concepts of the digital marketing organization which are also part of shared values and culture. The internal and external perception of these goals may vary
Staff skills in specific areas: supplier selection, project management, Content management, specific emarketing approaches (SEO,PPC, affiliate marketing, e-mail marketing, online advertising) Improving the perception of the importance and effectiveness of the digital marketing team amongst senior managers and staff it works with (marketing generalists and IT)
Models and approaches
Mbo : Management by objectives (MBO) is a systematic and organized approach that allows management to focus on achievable goals and to attain the best possible results from available resources. It aims to increase organizational performance by aligning goals and subordinate objectives throughout the organization. Ideally, employees get strong input to identify their objectives, time lines for completion. EFQM Excellence Model:
. The EFQM Excellence Model is a practical framework that enables organizations to:
6|P ag e
y y y y
Assess where they are on the path to excellence; helping them to understand their key strengths and potential gaps in relation to their stated Vision and Mission. Provide a common vocabulary and way of thinking about the organization that facilitates the effective communication of ideas, both within and outside the organization. Integrate existing and planned initiatives, removing duplication and identifying gaps. Provide a basic structure for the organization¶s management system.
Bsc:
The balanced scorecard is a strategic planning and management system that is used extensively in business and industry, government, and nonprofit organizations worldwide to align business activities to the vision and strategy of the organization, improve internal and external communications, and monitor organization performance against strategic goals. Plainly stated, the BSC is a multi-source business performance management system based upon the most important organizational measures. These major components (measurement categories) are termed key performance indicators and include: Financial, Customer, Internal Business Processes, and Learning & Growth measures.
BPR:
Business process reengineering is the analysis and design of workflows and processes within an organization
How these are helpful to meet your organizational needs .
LEARNING OUTCOME 2:
Engaging people and developing performance Engaging the people and developing performance by awarding them different benefits is important part of strategic performance based management and term as a firm¶s power.Organizational power is the capacity to persuade a group to work toward the accomplishment of a company's organizational goals. It depends on the personality traits of the individual exercising the power. There are five types of organizational power: reward, coercive, expert, and legitimate and referent. Reward and coercive power are commonly used within organizations. However the use of these two together can decrease the power of the individuals over time. Reward Power
o
Reward power is used by offering rewards to encourage better performance from employees within the organization. Increases in salary and awards given based on things such as attendance or productivity are examples of reward power. The rewards given should be proportionate to the task or work performance the employee has completed or this type of power can backfire..
7|P ag e
Coercive Power
o
Coercive power relies on the management's ability to punish, threaten or discipline unacceptable behavior. The goal in using coercive power is to convince employees through fear to work toward reaching the organizational objectives. Threats of demotion, suspension or decrease in pay are examples of coercive power.
Developing people, performance and teams It is important to develop a culture where a company manages and grows business through investing the time to mentor employees to build a strong sustainable company to compete in this fast-paced competitive environment. This does not happen overnight. As stated before, to create a high performance team takes focus, drive and a lot of work, but the pay off is valuable to the company and to the employees. Having internal working relationships with a positive focus on an outcome is a key. Working relationships that do work are characterized by open and respectful communication that builds accountability and trust. These three characteristics go hand in hand. Many companies think there is not much you can do to improve the quality of communication, accountability or trust within a company and it is accepted to let things be status quo. People either possess the qualities of accountability or trust or they do not, right? Wrong. You can make a difference. These principles of working relationships are the framework within which our company's managers and employees relate to each other on the job. Without these basic principles, confusion about what an employee should or should not be doing arises. If anything is identified through the five principles of working relationships to work on to gain better communication and understanding,. 1. The Problem Resolution System. 2. Self-Perception Enhancement. 3. Bringing Mentoring to Your People. 4. Everyone Wins. Handling under-performance:
Standard
When giving feedback, particularly on poor performance, it¶s useful to know what you are benchmarking this against. If people don¶t know what is expected of them, it is very easy to get defensive. So establish the standards you expect and communicate these. You may not always need to refer to these during the feedback process, but be mindful of these as you give the feedback.
8|P ag e
Action
What is the action they performed? Emphasis is on their actions, not on your interpretation of it. So you are feeding back what you observed or heard, not on their intentions, their personality or their character. Limit the number of actions you comment on a level they can handle ± far better to give feedback on one key action that they can digest and build on to make a difference, than ten things which leaves the message diluted (and invariably leaves them demotivated). Because this is based on fact it is less likely to be challenged. Link back to the standard if necessary to highlight where people have exceeded or fallen short.
Impact
What impact did their actions have on the result? This can include positive or negative impact on the end result or on the process itself e.g. the amount of effort needed on their part to achieve the result, or the impact on others, etc. When giving praise it is so easy to say to someone µthat was really good, well done¶ without saying why it was good or what made the difference this time compared with previous occasions.
Development
How can they build on this for the future? Remember, the purpose of feedback is to enhance performance and motivate. So this last stage is important to determine what happens next e.g. develop to make it even better next time around, to correct a mistake or to perfect a process. Put the emphasis on what is missing rather than what is wrong ± building on strengths or positives is far more likely to engender enthusiasm. Using open questions, ask the individual how they think things can be developed or built upon. This will help to gain buy in and you may be surprised by the options they suggest. Here are the three key situations for giving feedback within the workplace. 1. 2. 3. When all is going well ± feedback and praise. Mixed performance ± feedback mixed with positive and corrective action. When all is not well ± feedback to address under-performance.
This model works equally well in all three. LEARNING OUTCOME 3: Traditional motivation models: THEORY X / THEORY Y Douglas McGregor presented the: Theory X is the traditional view of direction and control, based on these assumptions: 1. The average person inherently dislikes work and will avoid it if at all possible.
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2. As a result, most people have to be coerced, controlled and threatened if they are to put in enough effort to achieve the organization¶s goals. 3. In fact the average person prefers to be directed, avoids responsibility, isn't ambitious and simply seeks security. Theory Y, based on the integration of individual and organizational goals, assumes: 1. The physical and mental effort of work is as natural as play or rest, so the average person doesn't inherently dislike work. 2. We are capable of self-direction and self-control, so those factors don't necessarily have to come from elsewhere. 3. Our commitment to an objective is a function of the rewards for its achievement. 4. The average person learns not only to accept but to seek responsibility. 5. Most people have a capacity for imagination, ingenuity and creativity. 6. The intellectual potential of most people is under-used in modern industrial life.
HERZBERG'S MOTIVATION - HYGIENE THEORY Frederick Herzberg studied and practiced clinical psychology in Pittsburgh, where he researched the work-related motivations of thousands of employees. His findings were published in "The Motivation to Work" in 1959. He concluded that there were two types of motivation: Hygiene Factors t Motivation Factors So, once one've satisfied the Hygiene factors, providing more of them won't generate much more motivation, but lack of the Motivation Factors won't of themselves demotivate. There are clear relationships to Maslow here, but Herzberg's ideas really shaped modern thinking about reward and recognition in major companies. Maslow s hierarchy of needs Maslow has set up a hierarchy of five levels of basic needs. Beyond these needs, higher levels of needs exist. These include needs for understanding, esthetic appreciation and purely spiritual needs. In the levels of the five basic needs, the person does not feel the second need until the demands of the first have been satisfied or the third until the second has been satisfied, and so on. Maslow's basic needs are as follows: Physiological Needs Safety Needs Needs of Love, Affection and Belongingness Needs for Esteem Needs for Self-Actualization
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Expectancy and Reversal theory Expectancy Theory is based on an employee¶s beliefs:
Valence - refers to emotional orientations which people hold with respect to outcomes (rewards) ± the value the person attaches to first and second order outcomes Expectancy ± refers to employees¶ different expectations and levels of confidence about what they are capable of doing ± the belief that effort will lead to first order outcomes Instrumentality ± refers to the perception of employees whether they will actually receive what they desire, even if it has been promised by a manager ± the perceived link between first order and second order outcomes
Reversal theory There are several ways to characterize Reversal Theory. Apter (2001a; 2001b) introduces it as a theory of motivational style, a ³distinctive orientation to the world based on a fundamental psychological value ± such as achievement, love or freedom´. These motivational styles (or met motivational states) are what we refer to in everyday speech when we describe people as cheerful, affectionate, serious, and challenging and so on. They are central for any account of our mental lives. Reversal Theory gives a structural-phenomenological account of them, describing them as structures of conscious experience. Influence and persuasion y Myers-Briggs preferences
People who have a preference for sensing are immersed in the ongoing richness of sensory experience and thus seem more grounded in everyday physical reality. They tend to be concerned with what is actual, present, current, and real. As they exercise their preference for sensing, they approach situations with an eye to the facts. Thus, they often develop a good memory for detail, become accurate in working with data, and remember facts or aspects of events that did not even seem relevant at the time they occurred. Sensing types are often good at seeing the practical applications of ideas and things, and may learn best when they can first see the pragmatic side of what is being taught. For sensing types, experience speaks louder than words or theory. People who prefer sensing may: recall events as snapshots of what literally happened o solve problems by working through things thoroughly for a precise understanding o be pragmatic and look to the "bottom line"
o o
work from the facts to the big picture
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put experience first and place less trust in words and symbols o sometimes focus so much on the facts of the present or past that they miss new possibilities
o
Leading with political awareness An understanding of policy and politics is an increasingly important skill for managers, whether located in the private, public or voluntary sectors. There is a pressing need for managers to be able to work not only with the formal institutions and representatives of the state, but also across and with a diverse range of organizations. Many managers have to work with stakeholders who advocate or lobby on behalf of consumer, pressure and political groups. Other managers may have to understand and work in a complex and dynamic environment of legislation, regulation and policy advice. A globalizing world creates a range of uncertainties about world governance, national stability or local priorities which managers need to understand and to take account of, and which may have unexpected or substantial repercussions which have to be addressed. The impact of politics (both formal and informal) may vary according to the sector in which the organization operates; the degree to which it has a high and visible public profile; the sensitivity of some of its activities; and its accountability and governance structures. However, all organizations must take account of politics, and senior and strategic managers in particular must be sensitive to the interplay of politics with organizational purpose. It may also help operational managers if they have awareness of some of the key political forces acting on the organization. A range of skills for leading and managing in these environments is important for private sector managers as much as for public or voluntary sector managers, given the complex and increasingly media-visible world in which they are located. The rising interest in corporate social responsibility.
LEARNING OUTCOME 4:
Monitoring, measuring and improving performance. y Monitoring and measuring performance
It s essential that you determine the factors critical to your company s success, measure those metrics and put into place a system for continually improving performance. Here are some guidelines for helping you develop your company s process. Define Your Goals Determine the Metrics to Measure Your Company s Performance Develop Methods to Collect and Organize Data Compare Yourself to the Competition Conduct Research Understand Your Strengths and Weaknesses Focus on Customer Retention
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Team performance meetings Managers can accelerate performance in one hour per week by simply holding better weekly team meetings. Main benefits of holding such meeting are: #1: Teamwork #2: Performance Management #3: Improve Win Ratio 4: Build business acumen #5: Expand expertise #6: Create, Discover or Develop Leaders #7: React in Real Time to Changing Economy #8: Focus Performance appraisal: Managing effective performance appraisal The aim o f the Managing effect ive performance appraisal is to develop the knowledge and skills necessary to manage staff performance within a structured process, to ensure the object ives of the organizat ion are met, while developing the team and individuals to enhance their performance. The object achieved would be
y y y y y y y y y y
Understand the importance of your role as a manager of performance. Assess your leadership style and how it impacts on your team. Understand the process of performance management Assess your team to understand their motivational needs. Plan, Organize and Implement performance reviews Manage effective performance appraisals Deal with difficult appraisals Produce a plan of action for monitoring performance. Set and agree goals, with a clear understanding of expectations. Understand the golden rules for giving and receiving feedback.
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y y y y
Deal with poor performance in a positive manner to increase productivity. Know and work within the guidelines of specific areas of employment law. Work on the 10 motivational areas employees¶ desire from their managers. Understand the theory of motivation and differentiate between short term and long term motivation
FINDINGS AND RECOMMENDATIONS: Strategic Performance Management shows you how to develop a performance management programme tailored specifically to your corporate needs. What¶s more it is grounded in practical experience. By sifting the lessons and experience of organizations at all levels, the Report describes how every company can apply performance information to improve performance. It recognizes that this effort involves an integrated approach that engages leaders, the workforce, corporate culture and technology. Exclusively, this report shows you how to form an assessment of your current position to develop a practical and deliverable plan for improving your results. Whatever the current state of performance management in your organization, it shows you the way forward. Based on an extensive programme of research, Strategic Performance Management provides you with a toolkit to revitalize your performance management capability. The SPM Maturity Model ± described in detail exclusively in this report - is both a diagnostic and planning tool. It turns the research findings about companies¶ widely different success rates into a set of actionable principles and guidelines that you can apply.
CONCLUSION: Setting goals, monitoring an employee's achievement of those goals, sharing feedback with the employee, evaluating the employee's performance, rewarding the employee's performance or firing the employee. However, performance management applies to teams and organizations, as well. Organizational performance involves the recurring activities to establish organizational goals, monitor progress toward the goals, and make adjustments to achieve those goals more effectively and efficiently REFRENCES: L Kloot« - Management Accounting Research, 2000 - Elsevier The drive for reform in the public sector worldwide has focussed attention on the measurement of performance in public sector organizations. This is particularly true in local government. Local government has traditionally been concerned with measuring the delivery of primary
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RE Freeman - 1984 - mendeley.com ... Furthermore, most of the research on the stakeholder concept has taken place in four subfields: normative theories of business; corporate governance and organizational theory; corporate social responsibility and performance; and strategic management
RS Kaplan« - Harvard business review, 1996 - noppa.tkk.fi
... Communicate the Balanced Scorecard t Entire Company: At the end of one year, i ihe
management teams are comfortable jé» strategic approach, the scorecard is îiinated to the entire organization. 12 - ongoing) I Establish Individual Performance^ a: The top three layers of it ...
Strategic performance management: leveraging and measuring your intangible value drivers by Bernard Marr.p-45 Strategic and performance management of Olympic sport organisations By Jean-Loup Chappelet, Emmanuel Bayle=p=25 Strategic performance management: a managerial and behavioural approach=p 158
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