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How Strategic Performance Management Systems Boost Employee Satisfaction?



Every company, regardless of its size, can benefit from creating a culture where attention and value is placed on the employee's individual contribution while still maintaining a focus on the bottom line. That's what the best strategic Performance management systems help companies do.


Strategic performance management is a process which guides an organization as it develops a clear mission, sets goals to accomplish the mission, and defines clear, measurable steps in order to achieve those goals. A strategic performance management system is a powerful tool to help manage the process, measure the results, and allow the organization to more quickly and easily identify those areas that are not performing as needed.


Without a solid system in place, many companies try to pursue too many loosely defined goals. They get off track, one part of the organization pursues one goal, while another is after a slightly different objective. The employees feel conflicted because they often don't see where they fit into the big picture. In the end, the company never quite achieves what it set out to do and the employees are frustrated.


Companies which implement a strategic performance management system do things a little differently. They take the time and effort to set a clear strategy. The first step in developing an organization's strategy is to define and then prioritize the end goals for the entire company. Is it most important to achieve a better return on investment or does the organization need more customers? Should the organization focus on increasing its lifetime value of each customer or should they first cut costs?


Once the end goals are defined, the steps and processes to get there need to be laid out. Each step should be calibrated against measurable guideposts. This often involves a review of the entire organization, each department, and even each individual's function within the company. Each area of the company that is involved in reaching the end goal needs to understand its role, its responsibilities, and understand how it fits into the overall mission. Often, this analysis leads to realignment of people and responsibilities to better achieve the desired result.


The strategic performance management process would then be better able to give each individual employee a clear vision of their role in the overall mission and define measurable achievements. As this happens, employees begin to feel more involved and invested in their own, as well as the company's, success. With regular, consistent feedback, they begin to see how their individual contribution affects the overall objectives of the company. In addition, by setting out clear, measurable performance goals for each individual and department, it becomes easier to identify where the weak links are and address them.


Once an entire organization becomes involved and focused on a set of clear goals, the culture of the organization inevitably begins to change. The organization begins to function more as a cohesive team, with each individual player aware of his or her importance to the overall mission.