Moving from Performance Measurement to Performance Management


The article presented here states that any organization needs a high degree of performance to cop up with the need of the strategic change. Without a sound performance portfolio, there are lesser success possible strategic issues of the company.

But important concern is measurement of performance. The article interprets that any organization cannot be sure of its performance outcome until unless it has sound method of measuring its performance. A large part of the research paper is dedicated on measuring performance of firm and the important characteristics of performance are as follows:

Making certain that the outcomes of the management is been preserved.

Being conscious of the outside and inner culture of the company.

Reviewing and prioritizing the objectives with the situation.

By the measurement of performance, the company can actually evaluate itself with the level of proceedings. Thus performance measurement is a great tool in hands of the organization to evaluate itself on its policies.

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Once the performance of the firm is measured, next step is to implement the results on issues related to managing the performance. The firm has to make sure that whatever the outcome of the performance measurement is, are implemented in the strategies. Firms must see what all changes have to be done and how to do that. (Baldry, 2002)

It is evidenced that firms which lack the implementation of result of performance evaluation in their strategies often fell short from their desired outcome. Facility management has been said to be a set of information that will be helpful to resolve the problems and situations. The article states that the key goals of any performance management system are to make certain the desired goals of the firm. Any firm must make sure to move gently from performance measurement to performance management to complement the implementation of results from performance measurement plan. (Baldry, 2002)

The selection of performance measures is another issue. They must be selected to make sure that all kind of information is provided which is related to the growth of the firm. The article concludes that the aim of performance management is to supervise the working and outcomes of the firms.

Critical Analysis


"The article states that performance measurement is a key tool for better proficiency of a firm and any firm must implement the result of performance measurement for performance management purpose".

Theoretical reasons:

This statement is important in many aspects. Firstly, performance measurement would be concentrated to analyze the areas where the concerned organization has not been performing up to the mark in the recent past. Performance measurement would give the firm the confidence to a state the areas within the organization that require improvement. This would help the company realize its shortcomings with respect to the employees by taking actions in these areas (performance management).

Practical reason:

The statement given above is correct in terms of various practical situations also. For example, in case of measuring the performance of the employees, performance management could be in terms of employee motivational plans or the various incentives that the employees are supposed to get and a few others in the context. Other than this, the company would also come to know of the deficiencies in the performance of the employees. It would be able to draw the outline of the required training that would be required for the employees as an after effect.

Thus the results of the report seams matching with various aspects in the organization like the employee related case mentioned above.


The article states that one of the goals of performance management is to encourage learning on a goal achievement analysis basis.


The term "learning" was invented in the 1980s to explain organizations that test with new ways of performing business in order to stay alive in turbulent, extremely competitive markets. Self diagnosis is a major tool for an organization to learn itself. By it, one can study fundamental aspects for the firm are:

Knowledge transfer


Solving problem by systematic methods

Learning through others

Now as the description of learning organization suggests, there is less correlation of success of learning and success of the task the firm made. Learning is not at all goal oriented but what the results are provided here in this article is suggesting is that learning should be judged by goal achievement analysis. So there is a point of conflict here.

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The result is practical also as learning can only be effectively possible is the participants are not pressurized for it. In the case the organization is evaluating its performance and learning on the result basis, the outcome of the learning process cannot be considered effective.


The below mentioned is an example of application of performance evaluation and management in a telecommunication firm with long hierarchy of management.

For the evaluation of the performance of the employees who are residing at the lower levels of management in the organization structure, the company can use grading system. Grading system is a simple and comprehensive tool and underpins only certain measures on which the performance is based. Like in telecommunication firm, lower level managerial staff that has to perform various functionalities like Setting up tower, maintenance of these towers and other laborious work are judged or evaluated in terms of the effective work and the efforts put in by them. If a person doesn't take on the load of physical and mental pressure which is required in these kinds of works, he is graded as fail and accordingly other workers are graded on the basis of hard work they did. The grades can range from A to E, where A will be given to the group of people performing with full dedication and hard work. The evaluating criteria here are hard work, dedication and the substantial knowledge level that is required to perform a job of this type. So in this way, grading system can be use for performance measurement of the employees at lower level.

Any telecommunication firm can take help of middle level managers in providing information on the behavior, conduct, honesty and integrity of the line manager and according weigh these aspects. The firm can also talks to the operatives working under respective line manager to know about the managerial approach he is using and how well he is accepted as a leader by the operatives. Thus on measures like managerial tactics, productivity of operatives working under him, giving and taking orders, behavior, conduct, cost and time performance appraisal of line managers are done.

Now once the performances of the employees are measured by the above techniques, next step is to take suitable actions. Once the company is able to measure the performance of the employees, it would be able to estimate the extent of service that it would be able to provide to its customers. As for example, if the company has the desire to fight the 'pay per second' policy of any other communication firm, it would have to see whether the resources available at hand are sufficient enough in terms of talent and strength to do so. Only if it's is possible, it can look forward to make an attempt or else it would be baseless doing do. Thus the blend of performance measurement and performance management can prove very beneficial for any firm.