Almost
all organizations generally implement performance management systems (PMS) in
order to:
- Monitor productivity
- Communicate strategy
- Reduce costs
- Review business strategy
- Support reward system
- Control operation
- Legal requirement
- Need to win customers contracts
PMS
adoption is a combination of both fashion trends and real needs. But the effects of PMSs need to be better
understands in order to maximise their benefits. Organizations should pay more attention to the
internal effects of performance management. These effect are the engines that drive results:
productivity, profitability, and reputation.
PMSs
when implement correctly can increase the transparency of information, improved
horizontal and vertical co-operation and encourage friendly competition. Generally, PMS can help people to focus on key
business issues and also provide people with a different way to operate.
Shared From Article By
Veronica Martinez and Mike Kennerley
Accountants Today
September 2006
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