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CEO Online Magazine (Ezine): Human Resources Management (HRM)

Performance Management by Elizabeth Morgan

Measurement of actual performance does not only mean knowing what has happened, but also what is likely to happen. It means that deviations are predicted in advance, which helps the management to take corrective action in advance for the achievement of goals. As such, it is desirable to measure performance as soon as the operations are completed. Not only this, it can also be measured while the activity is in progress, so that appraisal would be possible in time.

Measurement of performance can be done by personal observation, as in the case of subordinates being observed while they are engaged in work, and by a study of various summaries of figures, reports, charts and statements. If the control system is well organized, quick comparison of these figures with the standard figures is quite possible. This will reveal variations. Some variations are desirable, such as the output above the standard or expenses below the standard. But some other variations are undesirable, such as a variation in the delivery schedule agreed upon with customer or a variation in the speed limit fixed for all drivers.

One important point to be considered before introducing a control system is whether measurement and comparison are to be done at various stages in the total process, or at the end. If the purpose of control is to troubleshoot while trouble is forming, then observation should be done at various strategic points as work progresses.

The actual performance can be easily compared if the standards are properly determined and methods are clearly communicated. The manager should concentrate on those main deviations, which are noticed while making the appraisal. But he/ she should not waste his time and energy on small deviations. This approach will give the correct, quick and favorable results. At the same time, simple and effective action also avoids uneconomic watching, wastages of time and attention.

While comparing the actual and standard performance, it is wiser to find out the extent, nature and basic causes for deviations. A competent manager does not find any difficulty in locating the deviation points while measuring the actual performance properly.

Performance Management Software

Managers, like everyone else, want their performance positively appraised. They seek approval. Even if individual managers have full freedom to act in accordance with the currently conceived social responsibilities, they might not do so because of standards applied in evaluating their performance. That's where the performance management software plays a helping hand.

Therefore, if their success is measured by profit, living within a budget, tax collection as a percentage of income, or the volume of blood contributed to a blood bank, managers will tend to strive for excellence in these regards. If success is measured in familiar terms - such as pollution control, the number of reformed convicts returned successfully to society, the dollar support for employees seeking university degrees, the ratio of "disadvantaged" to total number of employees, achievements in raising the productivity of subordinates, or combinations of these and similar goals - then managers will strive to achieve them.

The most appropriate standards to use for appraising managers as managers are the fundamentals of management. It is not enough to appraise a manager broadly, evaluating only performance of the basic functions of the manager; appraisal should go further. The best approach, also been used by the performance management software is to utilize the basic techniques and principles of management as standards.

If they are basic, as they have been found to be in a wide variety of managerial positions and environments, they should serve as reasonably good standards. As crude as they may be, and even though some judgment may be necessary in applying them to practice, they give the evaluator some benchmarks for measuring how well subordinates understand and are following the functions of managing. They are definitely more specific and more applicable than evaluations based on such broad standards as work and dress habits, cooperation, intelligence, judgment or loyalty. They at least focus attention on what may be expected of a manager as a manager.

Performance Management Consulting

Certain enterprises change much more rapidly than others. The rate of change is an important determinant of the degree to which policies can be formulated and the stability of policies maintained. It may explain the organization structure of companies- railroad, banking and public utility companies, for example- operating with wide spans of management or, on the other hand, the very narrow span of management used by General Eisenhower during world war second.

The effect of slow change on policy formulation and on subordinate training is dramatically shown in the organization of the Roman Catholic Church. This organization, in terms of durability and stability, can probably be regarded as the most successful in the history of western civilization. Yet the organization levels are few: In most cases bishops report directly to the pope and parish pastors to bishops. Thus, there are generally very few levels in this worldwide organization and a consequent wide span of management at each level.

The effectiveness with which communication techniques are used also influences the span of management. Objective standards of control are a kind of communication device, but many other techniques reduce the time spent with subordinates. If every plan, instruction, order or direction has to be communicated by personal contact and every organization change or staffing problem has to be handled orally, a manager's time will obviously be heavily burdened.

Written recommendations by subordinates, summarizing important considerations, frequently speed decision making. Some busy top executives widen their span of management by insisting upon summary presentation of written recommendations, even when these involved enormously important decisions. A carefully reasoned and presented recommendation helps an executive reach a considered decision in minutes when even the most efficient conference would require an hour. An ability to communicate plans and instructions clearly and concisely also tends to increase a manager's span.

Performance Management Training

The number of subordinates a manager can effectively manage depends on the impact of underlying factors. Aside from such personal capacities as comprehending quickly, getting along with people, and commanding loyalty and respect, the most important determinant is a manager's ability to reduce the time he or she spends with subordinates. This ability naturally varies with managers and their jobs, but several factors materially influence the number and frequency of such contacts and therefore the span of management.

The better the training of subordinates, the fewer the number of necessary superior-subordinate relationships. Well-trained subordinates require not only less of their manager's time but also less contact with their managers. Training problems increase in new and more complex industries. Managers in the technologically stable railroad industry, for example, would tend to be more completely trained than those in the ever-expanding aerospace industry. The rapid changes in policy and procedures in the complex electronics and missile industries would increase training problems.

Training enables managers to reduce the frequency and extensiveness of time-consuming contacts. The principal cause of the heavy time burdens of superior-subordinate relationships, however, is to be found in poorly conceived and confused organization. The most serious symptom of poor organization affecting the span of management is inadequate or unclear authority delegation. If a manager clearly delegates authority to undertake a well-defined task, a well-trained subordinate can get it done with a minimum of the manager's time and attention.

But if the subordinate's task is not one that can be done, if it is not clearly defined, or if the subordinate does not have the authority to undertake it effectively, either the task will not be performed or the manager will have to spend a disproportionate amount of time supervising and guiding the subordinate's efforts.

About the Author

Performance Management provides detailed information on Employee Performance Management, Manufacturing Performance Management, Marketing Performance Management, Performance Management and more. Performance Management is affiliated with Job Performance Appraisals.

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