PERFORMANCE MANAGEMENT

 

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