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a. Organisational Performance Management
To what extent are the pervasive characteristics of organisational performance management essential for ensuring organisational effectiveness?
While other sectors has long been a priority in organization, performance management has only recently received serious attention. Before 60 years, the picture of traditional performance management is not clear as present time, but the frameworks have been developed to encourage a more balanced view between internal and external factors, financial and non-financial measures. If these balance will not created by this sector every business or organization would be in collapse. Apart the hazard in implementation of organisation performance management, all business take the risk and we can say that this part made businesses more success in all the world. This paper argues that features in organisational performance management are essential to ensure organizational effectiveness. It reviews the literature on the organizational and performance management in public and private sectors and suggest strategies to manage effectiveness in different situation.
According to, Bobby Mackie (2008) “organisational performance management in a government context is therefore the activities of government or its agencies in planning, implementing, reviewing, evaluating and reporting, the effectiveness of its policies, programmes and projects.” In this part we will discuss OPM and pervasive characteristic in public sector and how they manage effectiveness. Pervasive characteristic are a lot but most important in this sector are: target, implementation, results, communication and evaluation. Different model and theory are implement in some goverment such as Scottish and UK. OPM can serve in two particular functions like intra and extra. Intra means to control and mainten performance and to corrective action if something goes wrong inside the organization. While extra is for third part and communication with goverment for governance purpose ( Mackie, 2008, p2). Scottish goverment in may 2007 create “five strategic objectives” (Machie, 2008, Appendix 1) for spending review in elections to have more efficiency where is describe with detail what they wanted to achieve over a four years period.They implemented all their target and take positive result in elections. After they win this process came together like team to view strength and weakness point to improve that in later time. Scottish governmet manage their performance into three elements:pre-controls, concurrent control and post-control and this strategy for them was very efficiency for the elections ( Scottish Government, 2007 cited in Mackie ,2008).
Another model that have success in UK was “traffic lighting”. This model is used for performance measurement where green light is for success, yellow for mixed result and red for unsatisfactory or failer. But this model is not necessary a good meter effectiveness because depend on the time and the volume of the work, sometimes are not in the same meter and level to count ( Mackie, 2008). From different research and books the most prefered model is “balance scorecard” design by Kaplan and Norton (1996) where the first and most important tool is finance part at the head of hierarchy. BSC is connected directly with organisation’s strategy and the best thing is that allow managers to assess the organization into four prespectives: “financial performance like funders or donors”, “customer knowledge like service users”, “internal business processes is desired inputs and outputs”, and “learning and growth”. For instance in the resource management department in Olathe, Kansas decide to implement this model because they need help on audit of serivce levels and accomplishments. This model help them to build trust into their citizens and they have transparency in all process. And the last one, they come back on focus four prespectives especially financial and internal part.If the public sectors put clear targets in this case government they are oriented toward success in high level.
OPM in business and governemt have a big gap between each other because most of business want to make profit and they are more focused in performance management. The first discussion about this case is organised by Murphy, Trailer and Hill (1996) where most of their performance observation came from organization theory and strategic management. However all business has different goals and become more difficult for theorist to analyse. In other hand there are other author that their theory is set into three hierarchy :”organizational effectiveness”, “operational performance”, “financial performance” and they think that is the perfect combination for a business (Pennings and Goodman, 1977; Pfeffer and Salancik, 1978).
According to Muhammad Saeed Mustafa (2013) if a business work more with employee performance objectives and standards will have a high result. If employee know all process and target of the company the work will be more easy for both side. And case study called “Organizational Effectiveness” spread in ten industry sector from fifteen different countries implemented seven steps model. This study shows that 61% of employee are positive about the stategy that their company choose and 48% have a positive view of senior leadership (Haid and Sims and Saulnier and Wang, 2010, p 8-10, Figure 1). Another model that Ertürk and all (2016) develop in Turkey a study in home applicants company where was implemented six sigma model. The result in this study was very positive because they rise up organizational performance. They saw that have a increasing percentage in technology, creating and development of new product, innovations, customer and employee satisfaction. As we view from this study this company decrease their costs, increase productivity, increase competitiveness only by applying this model.
A organization want to be more effective and to have high result and to do this they need to have strategy. If this startegy is written just in paper and never applied nothing will change. They should assign structure, roles, leadership , systems, capability and culture together to complete with success all process.All method and theories came from different authors, give a clear table about organization performance management and effectiveness. Both private and public sector wanted a better satisfaction from client/people, decrease costs and increase their competition. Implementation of some method in business and goverment help them to have effectiveness and to improve all process. As we observe from different case study, models and theory the only way that organization can lead is to have clear goals, improve their system and to communicate together like real team.
- Ertürk , M. and Tuerdi, M and WUJIABUDULA, A (2016) The Effects of Six Sigma Approach on Business Performance: A Study of White Goods (Home Appliances) Sector in Turkey. [Online] Volume(229), Pages 444-452. Available: Uniform Resource Locator ( https://ac.els-cdn.com/S1877042816310898/1-s2.0-S1877042816310898-main.pdf?_tid=9b6a5216-e875-43e0-8a52-120eeca7d4f8&acdnat=1545224839_bf2263225779a7ef0b2de9f397a124d1). Downloaded: 18 December 2018.
- Goodman, P.S., Pennings, J.M., et al. (1977) New Perspectives on Organizational Effectiveness. Jossey-Bass Publishers, San Francisco, Lon-don.
- Haid, M and Sims, J and Saulnier, D and Wang, H. (2010). Organizational Effectiveness. Available: Uniform Resource Locator (https://eoeleadership.hee.nhs.uk/sites/default/files/1317116794_DGgD_organisational_effectiveness_-_how_to_make_it_happ.pdf). Downloaded: 15 December 2018.
- Kaplan, R. And Norton. D, (1996). “strategic learning & the balanced scorecard”, Strategy & Leadership, Vol. 24 Issue: 5, pp.18-24, Available: Uniform Resource Locator( https://doi.org/10.1108/eb054566). Downloaded: 30 December 2018.
- Machie, B. (2008) . ORGANISATIONAL PERFORMANCE MANAGEMENT IN A GOVERNMENT CONTEXT: A LITERATURE REVIEW. Available: Uniform Resource Locator (mba.uws.ac.uk). Downloaded: 05 December 2018.
Murphy, G.B., Trailer, J.W. and Hill, R.C. (1996) Measuring Performance in Entrepreneurship Research. Journal of Business Research, Vol. 36, pp.15-23.
Available: Uniform Resource Locator (http://dx.doi.org/10.1016/0148-2963(95)00159-X ). Downloaded: 28 December 2018.
- Mustafa, M. (2013). Key factors in performance management. Bachelor’s thesis, University of Applied Sciences HAMK.
- Pfeffer, J. and Salancik, G. R. (1978), The External Control of Organizations: A Resource Dependence Perspective, Harper & Row, New York.
- Ted Jackson . Clear Point Strategy (2015) [Online] Available: Uniform Resource Locator (https://www.clearpointstrategy.com/balanced-scorecard-for-government/) | [Accessed: 01 January 2019].
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