The cycle approach to management is where the structures put in place are respected and used for reporting performance, managing and controlling alignment, and improvement of performance. The firm should also strive to align itself by aligning its departments, planning with strategy and resources with their maximum utilization. These ensure that there is collaboration and accountability.
The utilization of technology, especially in data mining, helps improve the success of performance management and also increases the levels of success. Measurement, sharing, and collaboration should be practiced to ensure that the right information is flowing in an organization.
The executives should be much involved in the process of performance management if they want the process to work. This is by managing the causes of rigidity in the organization, like culture, in order to encourage the employees to share. As the organization moves forward due to the above acts, do not rush to measure the results before absorbing the changes. The management should not wait for the business plan but should be part of coming up with it. It should not rely on giving orders but should allow for the flow of ideas and suggestions, both bottom-up and top-down. Moreover, they should not assume that the strategy will work once implemented but should do a follow-up to ascertain this.
Culture is the way of doing things; in other words, it is a means through which the norms of the accepted behaviors are based. Since performance management deals with people, culture determines the rules. It gives the guidelines which give rise to the organizational culture. Norms are the behavioral expectations of either a group or the society at large. The shared ideologies play a major role in strategy formulation, the performance of the company, and the competitive advantage; norms control the whole process of performance management.