Performance Management Literature Review

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Performance management : Performance management definition : The measurement of performance is the main subject of this study wherefore the definition of the term ‘performance’. Throw pertinent literature review we can say that no unique definition of the term ‘performance’ is there. Performance is the result of a person’s or a machine’s work, that is how it is defined in the dictionaries for example the Oxford English Dictionary, defines performance as “Performance: The action of performing, or something performed... The carrying out of a command, duty, purpose, promise, etc.; execution, discharge, fulfillment. Often antithetical to promise... The accomplishment, execution, carrying out, working out of anything ordered or undertaken; the…show more content…
Which leads us to deduce that to have a clear and complete idea of the overall performance of an organizational unit needs a set of Key Performance Indicators (KPIs). The Key performance indicators are a set of performance indicators, which have been selected or defined upfront by management that strongly reflects the critical factors that are of particular interest for performance of an organizational unit. Definition of Performance management: Krause (2005) “A performance management system (PMS) is a management system based upon indicators that support the tasks aimed at optimizing the benefits to an organization’s stakeholders. Therefore, effective PMSs must represent the correlation between performance goals, goal achievement indicators, success-critical value-added activities and techniques for the improvement of the performance on all levels and along the entire value chain of an organization” Translated from Krause (2005), pp. 17–21: Lebas (1995) “A philosophy which is supported by performance measurement. Achieving congruence as to the definition of the parameters of performance and the causal model(s) that lead to it is one of the essential functions of (performance) management” Lebas (1995), p.…show more content…
Sometimes pure data collection is associated with this activity. This element is not explicitly mentioned in some definitions, e.g. in Hoffmann and Krause. However, in our opinion, the measurement element is implicitly included in their definition. This is because they subsequently refer to the analysis element, which requires an “as-is” state. If necessary, the measurement element can include breaking the KPIs down into the PIs which are actually measured. It can also work in the other direction, consolidating the PIs back into KPIs. • Analysis includes the activities that go beyond pure measurement activities: evaluating, interpreting, projecting and forecasting from the current situation, determining the deviation from objectives and analyzing the effects of corrective actions resulting from interdependencies between goals and actions with ‘what if scenarios’. Within the analysis element it is not only deviations from goal attainment that are detected, but also information is provided with regard to “what happens if” the priorities (of goals or indicators) are
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