Areas of Performance management

 

Areas of Performance management

As it covers such a wide area, performance management is usually divided into two sub-disciplines: corporate performance management and people performance management.

Let’s take a look at each one in turn:

Corporate performance management (CPM)

The Corporate performance management (CPM) describes a tool that businesses use to create organizational strategies through predetermined methodologies, data processing, analysis, and reporting in order to track and manage an enterprise's performance. 

To put it another way, CPM assists businesses in enhancing their business management through the use of tried-and-true procedures and methods.

Also known as enterprise performance management (EPM) or strategic performance management (SPM), CPM focuses on the performance of the entire organization. It can be defined as a set of management processes that help the organization define and execute its strategy, and to measure and monitor performance in order to inform strategic decision making and learning.

The objective of CPM is on strategic performance improvement and, as such, CPM encompasses all sorts of processes for defining strategic objectives, measuring performance, analyzing performance, reporting and reviewing performance, and aligning the organization’s people and its culture.

CPM tools and techniques include management dashboards, Balanced Scorecards, KPIs, analytics, strategic planning, budgeting and forecasting, benchmarking, business excellence models, Six Sigma, enterprise risk management, project or program management, and performance reporting.

People performance management (PPM)

As you might expect, PPM is concerned with managing employees in an organization to make sure that their work supports the organization's overall strategic objectives.

PPM is a broad term that includes procedures for sharing company priorities and goals, coordinating personal objectives with company objectives, establishing performance metrics and targets, assisting individuals in understanding their own performance, and acquiring the knowledge and abilities needed to enhance outcomes.

Therefore, the goal is to match employee performance with the enhancement of corporate performance. It will benefit of effective people performance management include a valued, encouraged, and involved workforce, which can result in increased job satisfaction and better care quality.

PPM Tools and processes that are commonly used to manage people performance include appraisals, reward and recognition systems, personal development plans, performance targets, and performance review meetings.

References:

Marr, B. (2021). What is performance management? A super simple explanation for everyone. [online] Bernard Marr. Available at: https://bernardmarr.com/what-is-performance-management-a-super-simple-explanation-for-everyone/.

 

hr.berkeley.edu. (n.d.). Phase I: Planning | People & Culture. [online] Available at: https://hr.berkeley.edu/hr-network/central-guide-managing-hr/managing-hr/managing-successfully/performance-management/planning.