Page 39 - DMGT517_PERFORMANCE_MANAGEMENT_SYSTEM

Performance Management System

Notes (e) Share KRAs, preferably with those they report to, those they work along with, and
with those who report to them.
The KRA approach has three main advantages:
(a) Areas such as innovation, customer response time, and employee development are
included rather than being overlooked.

(b) It is the first stage of objective setting.
(c) It makes it easier to assess current performance.

3. Tasks and Target Identifi cation: Tasks and target identification involves the identifi cation
of roles, responsibilities, tasks and key targets of the employees. Each and every employee
should know their duties and key targets.
4. Goal Setting Exercises: An organization’s ultimate goals determine its strategy.

Example: An organization intending to become the world’s largest textile company
in the shortest possible time (ultimate goal) will increase its production capacities either
through organic route such as setting up new manufacturing facilities, or by acquiring
other textile organizations. Since acquisition helps increasing production capacities
quickly, the organization shall pursue acquisition as a strategy for faster growth. But
acquisition strategy also involves turning around the performance of the older acquired
production units which essentially calls for improving human performance for corporate
success.
5. Organizational objectives and strategy:

(a) Organization’s ultimate goal
(b) Organization’s competitive position
(c) Comparing organization’s strength with changing environment
(d) Examining organization’s critical issues
(e) Analysing organization’s opportunities

(f) Exploring best approaches in view of organizational resources and competencies
6. Assessment of organizational performance needs:
(a) Identifying competencies necessary for achieving organizational objectives and
strategy
(b) Gathering information about critical issues
(c) Determining new and future performance needs
(d) Prioritizing organizational improvement measures
(e) Recognizing core organizational values

7. Setting organizational performance expectations:
(a) Determining required vs. desired performance
(b) Determining current performance status
(c) Understanding, aligning, and agreeing on performance expectations

(d) Formulating key performance indicators

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