Performance Management Platform - a Pivotal Foundation for Breakthrough Performance

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Performance Management Platform – A Pivotal Foundation
for Breakthrough Performance
Ravee Ramamoothie
University of Liverpool

Abstract
Strategy execution is a topic of practical importance and its success depends on how an organization integrates and aligns the business units and the employee performance to the strategic goals of the organization. However, many organizations find that their strategic goals realization is not optimized. One of the key issues is that the strategy and the performance goals of an organization are often disconnected with the performance management platform, a function of the strategic HR in managing employee performance. Ramamoothie (2012) conducted a case study based research on how a performance management program is closely aligned to organizational strategy and performance. The purpose of the dissertation is to identify how a performance management program can be linked to organizational strategy and firm performance. Elements such as the enablers of alignment, if the model applied differs in companies of different scale, the application of goal setting, expectancy models and the reward systems are investigated to provide insights of the key success factors in implementing a performance management initiative. Case studies of two organizations of different scales in Asia, a large telecommunications company (LTC) and a mid-sized securities firm (MSF) were conducted and the findings were published as a dissertation paper in University of Liverpool, United Kingdom by Ramamoothie (2012). Both the organizations recently implemented organization wide performance management initiative. Based on these studies, the findings indicate that a few key enablers are critical for the successful implementation of a performance management initiative that aligns the organizational strategy and performance goals. These enablers are identified and validated against a contemporary management model presented by Kaplan and Norton (2006) on best practice principles of alignment and successful strategy execution. Ramamoothie (2013) herewith publishes series of short articles based on excerpts of this paper for wider audience in the performance management domain.

Ravee Ramamoothie
ravee@kpisoft.com

Page 1

Introduction
Leadership in organizations is increasingly being pressured to keep up with the demands of intense global competition, which are accompanied by increased ‘rate of change and complexity’ Jeston (2008, pg.33). Thompson, Strickland & Gamble (2010, pg.372) infer that the impetus for organizations now is not just in ‘crafting’ a good corporate strategy, but also in the ‘execution and management’ of the strategy.

Kaplan and Norton, (2006, pg. 2) in their research of global companies over a period of 17 years, found that the underlying principles for a good strategy execution and performance achievement reflect a similar pattern. Amongst the key principles is ensuring that strategy is translated into scorecards, which align the entire organization towards execution of the strategy. This essentially means applying performance management initiatives organizationwide, cascaded from organizational strategy. The pursuit of improvement in organizational and process efficiencies has always been a key factor that gives birth to countless new methodologies and operational philosophies. There have been numerous breakthroughs in management paradigms, specifically in the area of organizational excellence. Some of the notable examples in the field of strategy, execution management, performance, and change are: Porter’s “Five Forces” (Porter, 2008), Kaplan and Norton’s “Alignment” (Kaplan and Norton, 2006) and “Heart of Change” by Kotter (Kotter and Cohen, 2002). However, the ‘crucial factor in organizational excellence’ (Vecchio, 2004, pg.5) is the human element. These management principles are largely dependent on the human element, a fact that both academia and practitioners have long recognized....
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