Trends In Performance Management

Performance evaluation is a major part of the job review and salary increase process. Most companies implement an annual or biannual performance management process. To complete the process, organizations may use a software program designed for performance appraisals; however, smaller organizations may use a paper-based system. Either approach works; deciding factors depend on the size of the company and how much money company can afford to invest in a performance management system. The Performance Prism (Prism) reflects the growing importance of fulfilling stakeholders, i.e. shareholders, investors, customers, employees and suppliers requirements. In the Prism, there are five distinct but linked perspectives of performance identified that prompt the following questions for organizations to address when defining a set of performance measures: stakeholder satisfaction - who are our key stakeholders and what do they want and need; strategies - what strategies do we have to put in place to satisfy the wants and needs of these stakeholders; processes - what critical processes do we need to operate and enhance these processes; capabilities - what capabilities do we need to operate and enhance these processes; and stakeholder contribution - what contributions do we require from our stakeholders if we are to maintain and develop these capabilities. The Performance Prism (Prism) reflects the growing importance of fulfilling stakeholders, i.e. shareholders, investors, customers, employees and suppliers requirements. In the Prism, there are five distinct but linked perspectives of performance identified that prompt the following questions for organizations to address when defining a set of performance measures: stakeholder satisfaction - who are our key stakeholders and what do they want and need; strategies - what strategies do we have to put in place to satisfy the wants and needs of these stakeholders; processes - what critical processes do we need to operate and enhance these processes; capabilities - what capabilities do we need to operate and enhance these processes; and stakeholder contribution - what contributions do we require from our stakeholders if we are to maintain and develop these capabilities.