Performance management and strategic planning (application of goal thoery)


 

The systematic measurement, evaluation, and improvement of employee performance is part of performance management, a crucial component of organizational management. It is a crucial instrument for attaining the organization's objectives and enhancing overall effectiveness. The process of identifying an organization's direction, choosing how to allocate its resources to pursue it, and setting goals and objectives to accomplish that direction is called strategic planning, on the other hand (Marr & Gray 2012).

Any organization's success depends heavily on how well performance management and strategic planning work together. Strategic planning can be strongly impacted by performance management since it provides the data needed to make decisions. Performance management, for instance, aids in revealing possible issues and pinpointing areas that require development. In the process of strategic planning, this knowledge is helpful in establishing priorities and deciding how to distribute resources.

Performance management can also assist firms in matching their goals with the long-term objectives of the business. The achievement of the company's strategic goals depends on this alignment because it guarantees that every employee is pursuing the same aims. Organizations may benefit from using performance management to monitor their progress toward their strategic objectives. Organizations can evaluate how well they are doing in attaining their strategic goals by establishing clear performance objectives and regularly evaluating progress. The strategic plan must be adjusted as needed based on this information to keep the organization on track (Bianchi & Tomaselli 2015).

Performance management can also aid in discovering any talent shortages a firm may have. This information is helpful to firms throughout the strategic planning process because it enables them to decide where to invest in talent development and where they might need to hire new people. By understanding the importance of a precise measure on the employees of the company will benefit the achieving strategic goals as employees will pay a greater role in that (Poister 2010).

Applying goal theory 

In order to match individual and team goals with the overarching organizational goals, goal theory can be applied to performance management as part of strategic planning. The staff at all levels of the firm should be adequately informed of these demanding but attainable goals.

Once objectives have been set, performance management procedures can be used to track advancement towards these objectives. This entails giving workers timely feedback on their performance, establishing clear standards for their job, and developing growth plans to assist them in acquiring the abilities and information required to succeed (Latham, Borgony & Petitta 2008).

 References

Bianchi, C & Tomaselli, S 2015, “A dynamic performance management approach to support local strategic planning,” International Review of Public Administration, 20(4):370–385.

Marr, B & Gray, D 2012, Strategic Performance Management, Routledge.

Latham, GP, Borgony, L & Petitta, L 2008, “Goal Setting and Performance Management in the Public Sector,” International Public Management Journal, 11(4):385–403.

Poister, TH 2010, “The Future of Strategic Planning in the Public Sector: Linking Strategic Management and Performance,” Public Administration Review, 70s246–s254.


Comments

  1. Anonymous19 April 2023 at 08:46

    In modern firms, strategic planning is a frequently used management technique. isn't that right?

    ReplyDelete
  2. Udeshika Wanninayake1 May 2023 at 18:54


    Is it not true that strategic planning is a commonly employed management technique in contemporary organizations?

    ReplyDelete
  3. mohammed4 May 2023 at 09:05

    yeah that is true and that approach is also described in the article in detail

    ReplyDelete

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