An Overview of Performance Management

You can’t manage what you don’t measure.

Performance management uses data to improve operations by measuring outcomes and completion of goals (Artley & Stroh, 2001). Performance management provides a methodology for allocating resources and human capital for the purpose of accomplishing specific goals. This management system is not merely about productivity or pointing out deficiencies in operations, although these are part of the system. More than anything performance management provides a system of adhering to standards through consistent monitoring of data and application of measures for accountability and incentives as well as necessary changes to operations for positive impact.

The most successful performance management systems share seven elements:

1. Leadership is essential to the design of the system and will assist in the design and deployment.
2. The system has a logical and rational framework that is not arbitrary in its measures of performance.
3. Communication, both internal and external, are formed as part of the system’s measurement.
4. An accountability for results is designated and clarified for all organizational members.
5. The system will provide data that is useful and intelligent rather than just data without context.
6. Perhaps most important all incentives, rewards, and recognition will be linked with measurements of performance.
7. The system should operate in a positive method of improvement and not punitively.
8. All results should be shared with stakeholders otherwise the system cannot serve the function of improving performance (Artley & Stroh, 2001).

An effective performance management system will have rational metrics linked with goals and will be tracked consistently.

References

Artley, W., & Stroh, S. (2001). The performance-based management handbook a six-volume compilation of techniques and tools for implementing the government performance and results act of 1993. (1 ed., Vol. 2, pp. 3–12). California: Oak Ridge Institute for Science and Education.