Performance management 

(PM) 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 coined by Dr. Aubrey Daniels in
the late 1970s to describe a technology (i.e. science imbedded in applications methods) for managing
both behavior and results, two critical elements of what is known as performance.[1]

Contents
 [hide]

1 Application

2 Benefits

3 Organizational

Development

4 See also

5 References

6 External links

7 Further reading

[edit]Application

This is used most often in the workplace, can apply wherever people interact — schools, churches,
community meetings, sports teams, health setting, governmental agencies, and even political settings -
anywhere in the world people interact with their environments to produce desired effects. Armstrong and
Baron (1998) defined it as a “strategic and integrated approach to increasing the effectiveness of
organizations by improving the performance of the people who work in them and by developing the
capabilities of teams and individual contributors.”

It may be possible to get all employees to reconcile personal goals with organizational goals and increase
productivity and profitability of an organization using this process. It can be applied by organisations or a
single department or section inside an organisation, as well as an individual person. The performance
process is appropriately named the self-propelled performance process (SPPP).[citation needed]

First, a commitment analysis must be done where a job mission statement is drawn up for each job. The
job mission statement is a job definition in terms of purpose, customers, product and scope. The aim with
this analysis is to determine the continuous key objectives and performance standards for each job
position.
Following the commitment analysis is the work analysis of a particular job in terms of the reporting
structure and job description. If a job description is not available, then a systems analysis can be done to
draw up a job description. The aim with this analysis is to determine the continuous critical objectives and
performance standards for each job.

[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
 Stop project overruns
 Aligns the organization directly behind the CEO's goals
 Decreases the time it takes to create strategic or operational changes by communicating the
changes through a new set of goals
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
 Create transparency in achievement of goals
 High confidence in bonus payment process
 Professional development programs are better aligned directly to achieving business level goals
Improved management control

 Flexible, responsive to management needs

 Displays data relationships
 Helps audit / comply with legislative requirements
 Simplifies communication of strategic goals scenario planning
 Provides well documented and communicated process documentation
[edit]Organizational Development
In organizational development (OD), performance can be thought of as Actual Results vs Desired
Results. Any discrepancy, where Actual is less than Desired, could constitute the performance
improvement zone. Performance management and improvement can be thought of as a cycle:

1. Performance planning where goals and objectives are established

2. Performance coaching where a manager intervenes to give feedback and adjust performance
3. Performance appraisal where individual performance is formally documented and feedback
delivered

A performance problem is any gap between Desired Results and Actual Results. Performance
improvement is any effort targeted at closing the gap between Actual Results and Desired Results.

Other organizational development definitions are slightly different. The U.S. Office of Personnel
Management (OPM) indicates that Performance Management consists of a system or process whereby:

1. Work is planned and expectations are set

2. Performance of work is monitored
3. Staff ability to perform is developed and enhanced
4. Performance is rated or measured and the ratings summarized
5. Top performance is rewarded[2]
[edit]See also

 Aubrey Daniels
 PDCA
 Performance measurement
 Organizational behavior management
 Behavioral systems analysis
[edit]References

1. ^ Daniels, Aubrey (4th edition, July 2004). Performance Management: Changing Behavior that Drives
Organizational Effectiveness.

2. ^ A Handbook for Measuring Employee Performance, by the US Office of Personnel Management
[edit]External links
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by adding to it.

[edit]Further reading

 Organizational Behavior Management Network, Dr. John Austin, Dr. Dale Brethower, Dr. Alyce
Dickinson. www.obmnetwork.com. 2009.
 Performance Management: Changing Behavior That Drives Organizational Effectiveness, 4th ed.,
Dr. Aubrey C. Daniels. Performance Management Publications, 1981, 1984, 1989, 2006. ISBN 0-
937100-08-0
 Performance Management - Integrating Strategy Execution, Methodologies, Risk, and Analytics.
Gary Cokins, John Wiley & Sons, Inc. 2009. ISBN 978-0-470-44998-1
 Journal of Organizational Behavior Management, Routledge Taylor & Francis Group. Published
quarterly. 2009.
 Handbook of Organizational Performance, Thomas C. Mawhinney, William K. Redmon & Carl
Merle Johnson. Routledge. 2001.
 Bringing out the Best in People, Aubrey C. Daniels. McGraw-Hill; 2nd edition. 1999.
 Improving Performance: How to Manage the White Space in the Organization Chart, Geary A.
Rummler & Alan P. Brache. Jossey-Bass; 2nd edition. 1995.
 Human Competence: Engineering Worthy Performance, Thomas F. Gilbert. Pfeiffer. 1996.
 The Values-Based Safety Process: Improving Your Safety Culture with Behavior-Based Safety,
Terry E. McSween. John Wiley & Sons. 1995.
 Performance-based Instruction: Linking Training to Business Results, Dale Brethower & Karolyn
Smalley. Pfeiffer; Har/Dis edition. 1998.
 Handbook of Applied Behavior Analysis, John Austin & James E. Carr. Context Press. 2000.