Performance measurement and management: A tool for strategy execution

Abstract

In many organizations performance measurement and management (PMM) systems are little more than human resource bureaucracies with forms, rules, and review layers. These paper‐driven systems are burdens to managers and hence are completed marginally, if at all. They are typically seen by raters as extra work and by ratees as at best irrelevant, at worst demotivating. Most PMM improvement efforts center on the most visible aspect of PMM—the form. But these quick fixes attempt to treat symptoms (e.g., leniency), while diseases (e.g., lack of managerial accountability for performance improvement or development) go unchecked. Rather than periodic revisions to the rating scales, PMM can be made relevant by linking it to strategy execution. PMM can be a vital tool for strategy execution by signaling what is really important, providing ways to measure what is important, fixing accountability for behavior and results, and helping to improve performance. In this article a PMM process is described which begins with identification of Critical Success Factors (CSFs) derived directly from business strategy. These are the basis for a PMM process that is a welcome managerial tool. The successful use of PMM as a device for strategy execution is illustrated via a case study.

New HR roles to impact organizational performance: From ?partners? to ?players?

“…The third HR role Ulrich describes, executing the business's strategy (see also Schneier, Shaw, & Beatty, 1991), is at the heart of HR becoming more of a value-added player. In this role, HR's central responsibility becomes aligning the HR "tool kit" to deliver the behaviors needed to realize the business strategy.…”

Architecture de ressources humaines

“…Bien qu'étant intéressants, ces modèles demeurent généraux et une orientation plus pointue de la stratégie s'impose pour mieux lier la stratégie organisationnelle aux objectifs et pratiques de GRH. Selon plusieurs auteurs, les objectifs stratégiques peuvent être réduits à quelques facteurs clés qui permettent, lorsqu'ils sont exécutés avec excellence, d'obtenir et de maintenir un avantage concurrentiel et aussi de vérifier ultérieurement leur position concurrentielle (Grunert et Ellegaard, 1993;Schneier, Shaw et Beatty, 1991;St-Onge et al, 1998). Dans cette démarche d'alignement vertical entre les objectifs stratégiques et les objectifs de GRH, les facteurs clés de succès permettent de s'assurer que les objectifs visés sont réellement 6.…”

Highly Process-Focused Organizational Performance Measurement Model

“…"Performance measurement and performance management has become a critical management process to many leading U.S. companies over the last several years" [1]. The performance is related to the personnel level and organizational level.…”

“…The performance is related to the personnel level and organizational level. It is not a "staff-driven rating scale and forms", but a crucial management tool and process; not "measuring generic aspects of people or jobs", but "measuring those crucial success factors" that assure goal attainment, strategy execution [1] [2]. It's the engine of the company.…”