Improving Organisational Performance


According to foot and hook (2011) performance management “contributes to the effective management of individuals and teams in order to achieve high levels of organisational performance. As such, it establishes shared understanding about what is to be achieved and an approach to leading and developing people which will ensure it is achieved”. ACAS (n.d.) gives a similar definition stating “managing performance is a continuous process which involves making sure that the performance of employees contributes to the goals of their teams and the business”. Therefore it can be understood that performance management places emphasis upon the individual. It helps the employee to recognise how their own performance, fosters their departments capabilities which can lead to organsisational growth and success. From the management by objectives cycle Armstrong (2009), it can be gathered that performance management is a continuous developmental process, a job improvement plan that shapes organisational learning and aids in creating conditions that encourage planning and change.

The first stage of a conventional performance management cycle is the plan.
Broadly speaking, this identifies future performance requirements in terms of targets, actions and behaviours. The plan should challenge the individual but also be achievable. Ideally, it should allow that person to combine existing expertise with their potential for development. Plans must also address the alignment of priorities, including those of the individual, their team and the organisation as a whole. For the plan to work it also requires focus, both on what is to be achieved and how that is to be done. Finally, the plan requires commitment from all involved.
The second stage of a basic performance management cycle is the development of the individual’s expertise and potential. The development phase should focus on both improving current expertise, and on allowing new skills or knowledge to be gained,...