Relationship Between Performance Management and Organizational Goals
Relationship Between Performance Management and Organizational Goals
According to the U.S. Department of Commerce Office of Human Resource Management, performance management is a process where the Department of Commerce involves its employees in “improving organizational effectiveness in the accomplishment of agency mission and goals.” (hr.commerce.gov). They utilize the performance management process to communicate organizational goals, ensure there is accountability for meeting those goals and be able to track and assess both individual and organizational performance results. What is most interesting about this how intertwined the two are. Performance management if done correctly, will execute the strategies of the organizational goals, ensuring both individual and organizational success. It also demonstrates the alignment between how managers take responsibility for developing their teams so that they become high performing teams, ultimately helping the organization forge ahead.
In order for an organization to be successful it has to have or strive for alignment with the organizational goals. An effective performance management process will aid in the alignment of a company as employees will have a solid understanding of the company goals and strategies. They will understand how their role fits into the organization and how they contribute to its overall success. They will have a clear understanding that their priorities are also the company’s priorities and they will understand what is expected of them and what they are being held accountable to. In any relationship you cannot be successful with just one partner participating. The same is true with performance management and organizational goals, they must work together and it must be a top down style of leadership. Organizations must ensure that the goals that are set are not based on past performance or recent market trends. They must not be adjusted to an knee jerk reaction or concern from the board, but instead be working on the organizations’s overall vision and mission. Having consistency in expectations is important for employees to be able to understand, follow and ultimately execute and perform.
Alignment Drivers and Its Greatest Challenge
According to Smither & London, there are seven drivers that are connected to high alignment in an organization. These drivers are listed