For people interested in strategic performance management systems or SPMs, it’s all about an effective mechanism that links organizational and employee performance to improve the orientation of compensation systems. Basically, it guarantees that employees can achieve their important objectives set by companies, while the latter ones achieve the objectives that are included in their strategic plans.
The main objective of these systems is to concretize the connections of organizational performance with a development plan, organizational performance indicator framework, etc. Besides, they are used to guarantee both individual and organizational efficiency by cascading a range of institutional accountabilities to different company levels. Another important function of SPMs is to link performance management with other systems.
Don’t forget about the basic elements involved, such as those goals that are set according to organizational and mandate priorities, communication plans, team approaches to effective performance management, orientation on outcomes and outputs, informational systems to support evaluation and monitoring, and those user-friendly forms that show the alignment of both organizational and personal goals. Take into account that these systems should complement result-based performance systems that link societal goals and organizational performance. They are also connected to performance-based incentive systems that usually consist of PBB and PEI.
When learning more about SMPs facts, you should pay attention to the main process involved. There is a certain 4-stage cycle that consists of a few basic elements. First of all, it’s all about performance commitment and planning, and this is when all important success indicators are defined. Remember that these indicators are performance-level yardsticks that consist of performance targets and measures. They serve as the basis for the necessary performance preparation.
Performance coaching and monitoring are also important when using this kind of system. These processes are quite individual and they must be monitored at different levels on a regular basis. Different evaluation and monitoring tools guarantee appropriate and fast steps that should be taken to meet all important objectives and goals in the best way possible.
For people interested in strategic performance management systems or SPMs, it’s all about an effective mechanism that links organizational and employee performance to improve the orientation of compensation systems.