Nowadays, it is hard to imagine a successful modern company that would not manage the performance of its employees. In this regard, evaluating workers’ productivity, determining skills that require further development, and providing necessary training are crucial administrative functions that ensure the high efficiency of business operations. Therefore, the current essay seeks to discuss in detail what corporate performance management is and how to guide employee behavioral change. Moreover, the balanced scorecard framework is suggested as a good tool to handle business efficiency.
Enterprise performance management consists of the three crucial parts, namely goal setting, work efficiency review, and development of improvement plans. The former element includes determining individual- or team-level objectives and should be developed based on the strategic aims that an organization is currently pursuing (Bititci et al., 2016). Normally, goals can be divided into position-specific (daily job duties), project, behavioral, and stretch (expanding workers’ knowledge and expertise) goals (Society for Human Resource Management, n.d.).
The performance review implies that the managers continuously check employee’s or team’s progress in reaching predefined objectives and provide necessary feedback. Such an audit of the efficiency may help workers to understand which spheres of their responsibilities necessitate additional efforts. Furthermore, it may facilitate administrators’ decisions regarding employee promotion, the need for additional training, and salary raises. Finally, the third part includes the development and implementation of performance improvement plans or, in other words, management of the behavioral change. In short, the aforementioned concept implies that employee’s attitudes and behaviors should be changed so that they would best suit the current necessities of a company.
In order to achieve that goal, managers should be able to communicate the existing problems concerning workers’ performance and the reasons why the change is necessary to their subordinates. Also, it is necessary to concentrate on one facet of behavioral change at a time. Otherwise, the employees may become increasingly overwhelmed because of attempts to improve in every aspect. In addition, managers should always seek to merge workers’ individual objectives with the organization’s goals.
If leaders can successfully achieve that aim, then it is told that the employee’s value system is congruent with the company’s value system. As a result of such a match, it is found that worker’s and company’s overall performance increases (Gulbovaite, 2017). There are generally three main reasons that can affect an individual’s conscious or unconscious will to follow the company’s goals. Firstly, managers should build trustful relationships with their subordinates. Secondly, administrators should seek to increase the scope of workers’ responsibilities regarding the results of their work. Finally, all the individual achievements of the employees should be recognized and rewarded (better publicly). All the previously mentioned actions are important as they make an employee feel that he/she is a crucial part of the company. Therefore, they lead to an increased feeling of belonging, which results in higher congruency.
In conclusion, it is necessary to provide a practical framework that would allow consideration of behavior change goals in connection with other company’s strategic objectives. It is suggested that managers use the balanced scorecard theory as it provides useful guidelines to match the objectives of various company’s departments. The model encompasses four distinct goals that are inherent to every organization. They include financial, customer (what is important for customers), process (quality improvement and cost reduction), and staff-related (development and training) goals. Each objective is related to and dependent on other objectives and, thus, decision-makers must consider all the spheres together.
Bititci, U., Cocca, P., & Ates, A. (2016). Impact of visual performance management systems on the performance management practices of organisations. International Journal of Production Research, 54(6), 1571-1593.
Gulbovaite, E. (2017). Strengthening the congruence of personal and organizational values. In J. Vveinhardt (Ed.), Congruence of personal and organizational values (pp. 43-62). IntechOpen.
Society for Human Resource Management. (n.d.).Managing employee performance. Web.