Performance Management

Short term Motivational Environment:

Whereas a company’s culture affects strategy implementation over the long haul, the short term motivational environment affects strategy implementations today, the short term environment reflects the immediate mood of the company’s employees and contributes to the way they face immediate problems , Building such an environment involves actions very similar to public relations activities (1) communications programs (2) morale building conferences (3) visibility of charismatic leaders (4) use of awards , a language symbols, gestures etc.

Performance Management

The traditional motivators (MBO, performance appraisal, etc) should be logically and firmly linked to what is called an integrated performance management process. To this end detailed budgets and program should be drawn. Individuals should know exactly what piece of the organization structure they are accountable for and that goals and objectives they must attain this year to stay on plan. Performance management ensures that rewards and sanctions result from measures of good or poor performance. It links human resources planning with the firm’s strategy formulation and performance appraisal process so as to guide the future efforts of the company.

Individual Motivators

In addition to the traditional motivating techniques, the organization should also provide for individual motivators for achieving results competently. Over reliance on bonuses and incentives may not fully motivate individual managers in today’s world. Top management should, therefore fully understand the individual differences and devise an appropriate motivational strategy. Though it is difficult to categorize individual motivators, some of the important ones may be stated thus:

1) Mastery: The act of mastering a new skill or gain control over challenging problems is most motivating to many individuals.
2) Approval: Lack of approval can hamper and constrict the performance of talented and bright managers.
3) Risk and Adventure: High visibility positions having risk and adventure are mostly preferred by managers possessing entrepreneurial talents.
4) Security: In order to perform effectively and efficiently managers need to feel that there is little at risk with respect their careers.
5) Power and influence: organizational positions that enable managers, to gain power and control over human as well as non human resources are highly motivating.

Strategic Control and Assessment:

Strategic control, the last step of the strategic management process, is monitoring and evaluating the strategy management process as a whole in order to make sure that its operating properly. The focus is clearly on activities involved in environmental analysis, organizational direction, strategy formulation. strategy implementation ensuring that all steps of the strategy management process are appropriate, compatible and functioning properly. There are three basic steps to the strategic control process.

Measure Performance

Strategic audits are used to find what is actually happening in the organization. Both qualitative and quantitative tools are employed for these purposes. The qualitative measurements looks into five questions (1) Is the strategy internally consistent? (2) Is it consistent with its environment? (3) Is it appropriate given organizational resources? (4) Is it too risky? (5) Is the horizon of the strategy appropriate? Quantitative tools like return on investment (the relationship between the amount of income generated and the amount of assets required to operate the organizations ); z score (an analysis that numerically weighs and sums five measures – working capital \total assets; retained earnings \ total assets; earning before interest and taxes \ total assets: market value of equity \ book value of total liabilities and sales \ total assets – to find whether the company in question is likely to go sick and become bankrupt) ad share holders audit etc. are used to measure organizational performance.

Compare performance to goals and standards

Here management builds a case for concluding whether the performance is according to the predetermined standards in respect of certain key areas. At General Electric, the following eight type of standards are set for comparing performance at later stage profitability market position, productivity product leadership personnel growth ,employee attitude ,social responsibility and standard reflecting balance between short range and long range goals.