Changing Trends in Performance Management

Changing Trends in Performance Management

The objective of performance measurements have changed over past few decades. Traditional performance measures based on productivity are no longer applicable or representative of the information needs of today's competitive global market. Alternative performance systems have been proposed that range from time as the basis of all measures to the integration of a variety of performance measures. Reviews and analyses the limitations of traditional approaches to performance measurement as well as the emerging trends in performance measurement system development. Out of many, under mention performance measurement system is briefly discussed. 

An integrated dynamic performance measurement system (IDPMS)

 

Until the 1980s organizations trusted exclusively on performance measurement systems based on traditional cost accounting systems to control, monitor, and improve their operations. However, it has been shown that these systems do not capture the relevant performance issues for today’s environment.

Quality improvement continues to be an important international business strategy as we enter the twenty‐first century. Legal requirements, customer demand, market pressure, competition, and the need for in‐house quality improvement have driven more trades to become certified with global requirements such as ISO 9000, ISO 22000, HACCP, GAP, GMP, UTZ and Rainforest Alliance. Which is expensive, time‐consuming requires significant dedication and effort.

Integrated dynamic performance measurement system developed in combination with three main areas of the organization;        

                                                                                              

• Management

• Process improvement team

• Factory shop floor

To achieve an integrated system, the three areas are linked through the specification, reporting and dynamic updating of the defined areas of success, performance measures, and performance standards. Three tools are incorporated to support and enhance the integration within the IDPMS.

Conclusion

In today's globally competitive world it is essential to design products with maximized functions with minimized costs. The main areas of concern (IDPMS) were the skills, attitudes, consistency and quality approach of the managers of the organization. One of the most dreaded tasks managers face is meeting with employees to discuss their job performance. These meetings present a dilemma for managers. On one hand, managers need to give constructive criticism so that employees can improve their performance. However well-designed performance management system is, its effectiveness mainly depends on the commitment and the skills of managers of the organization.

References

Andy Neely, Mike Gregory, Ken Platts, (1995). International journal of operations & production management

Andrew Gauteau, Brian H. Kleiner, (2001). "Recent trends in performance measurement systems – the balanced scorecard approach", Management Research News, Vol. 24 Issue: 3/4, pp.153-156, https://doi.org/10.1108/01409170110782793

Armstrong’s Hand Book on Human Resource Management Practice, (2009).