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Performance management includes activities to ensure that goals are consistently being met in
an effective and efficient manner. Performance management can focus on the performance of an
organization, a department, employee, or even the processes to build a product or service, as well
as many other areas.
Performance Management as referenced on this page is a broad term. See Aubrey Daniels for a
detailed explanation of the origin of the term Performance Management (PM) which was coined
by Dr. Aubrey C. Daniels in the late 1970s to describe a technology (i.e., science imbedded in
applications methods) for managing both behavior and results, the two critical elements of what
is known as performance.
[edit] Benefits
Managing employee or system performance facilitates the effective delivery of strategic and
operational goals. There is a clear and immediate correlation between using performance
management programs or software and improved business and organizational results.
For employee performance management, using integrated software, rather than a spreadsheet
based recording system, may deliver a significant return on investment through a range of direct
and indirect sales benefits, operational efficiency benefits and by unlocking the latent potential in
every employees work day i.e. the time they spend not actually doing their job. Benefits may
include :
Direct financial gain
Grow sales
Reduce costs
Motivated workforce
Optimizes incentive plans to specific goals for over achievement, not just business as
usual
Improves employee engagement because everyone understands how they are directly
contributing to the organisations high level goals
Professional development programs are better aligned directly to achieving business level
goals
As the twentieth century eases toward closure, there are indications that new
performance are aborning. Somehow, they seem to cannibalize the best from old
systems to weave the new. They leave behind the lock-step work flow of the engineered
assembly process and abandon the narrow specialization of work that characterized it.
In its place there is flexibility for the system to redesign itself around a multi skilled work
force, trained and empowered to make production decisions formerly reserved solely for
production engineers. This is one current variety of emerging performance system. But
it is probably only one of many new kinds of performance management systems with
potential to emerge in this age. Indeed, the pace of technological change may open the
The first stirrings of modern shop management practices appear within the discipline of
industrial engineering. The dominant personality in this field unquestionably is Frederick
Winslow Taylor, the universally acknowledged father of scientific management. Taylor's
accomplishments training within a context of a robust and supportive work culture.
Indeed, one of the best paths to high performance at the turn of the twenty-first century
appears to be in systematic, purposeful construction of a performance culture formed
around the selected skills and attitudes of individual workers, augmented by intensive
training within a performance culture. Attention to relevant individual differences and to
work group values is indispensable to creation of such a culture. Indeed, an argument
for the necessity of discriminating good from poor potential workers probably turns on
the individual's potential to the shape and quality of organization culture. Ultimately, the
robustness of a culture is determined by the clarity, honesty and openness of its
communications. These are issues that must also be visited.