Performance management
The term performance management or English performance management refers to the management of an organization that deals with the control of the service provision. The time taken to provide services and the resulting commitment of resources are measured and controlled. As a result, the work done (performance times time) should be assessed.
The aim of the performance management approaches is a systematic, multi-dimensional performance measurement, management and control as well as tracking of various application objects or performance levels (employees, teams, departments, processes ) with the aim of continuously improving individual and corporate performance . In performance management, a. Learning effects and employee motivation are built up. A performance measurement system is used as the database to support balanced performance recording .
What all approaches have in common is that, in contrast to the heavily criticized balance sheet and accounting- oriented control instruments, they not only relate to the analysis , planning, management and control of financial (= primarily past-oriented) variables, but in particular integrate future-oriented, non-financial variables in order to thereby enable holistic planning and control of the company's performance and efficiency. This is usually achieved by creating a model that, based on the current status, has the content of the further development of the service processes.
Service is to be understood here both as a process flow, in the sense of service provision, and as a result. The process-centered performance analysis is the basis of process performance management . In general, a balanced mix of parameters for measuring financial results, process efficiency , quality , and employee and customer satisfaction is required. Therefore, as instruments of a performance measurement z. B. cited the balanced scorecard .
Public services
In the state sector ( public management ), the term has been used since the 1940s to describe a focus on the services and effects of state action. Time and again, attempts have been made and are still being tried, for example, to tie the resource allocation to services instead of to expense types (so-called performance budgeting). Performance management has become particularly topical with the reform approaches of public reform administration .
Non-profit organizations
Performance management has become of existential importance for a non-profit organization in the wake of the growing pressure to legitimize: If not to make a profit, what is the organization doing? And what does it actually achieve? Thinking in terms of impact-oriented goals is a prerequisite for building a performance-oriented system. This is followed by the development of so-called cause-effect chains. These represent the logical connections between the resources used and the effects achieved. It is a matter of dispute whether such relationships can even be ascertained in the areas of activity of a non-profit organization in view of the diverse influences. Regardless of this, the learning process that triggers performance management in the organization must be observed.
Expressions
An IT implementation of performance management methods is usually referred to as IT performance management . This also includes so-called application performance management .
The business performance management approach focuses on the situation of the company as a whole, as opposed to focusing on individual business areas. The goal is to improve the overall performance of the company. This means aligning strategic and operational objectives and activities in order to control the performance of a company. The aim is to give those responsible a tool to determine and control the current position of the company. It is necessary to determine a suitable, risk-adjusted performance measure ( performance (risk management) ) as a measure of success, which can be derived from a result measure (e.g. expected value of profit) and a risk measure (e.g. standard deviation of profit). In value-oriented management concepts, economic value added or the company value is often used as a measure of performance. The aggregated scope of risk is usually recorded using the risk-adjusted cost of capital .
Operational performance management is the alignment of the different branches of business within a company in order to improve the common business goal. This is achieved by optimizing the operational processes of the business units.
Marketing performance management is a specialization in performance management in marketing . It focuses on marketing performance, effectiveness and their return on investment .
Delimitations
The general concept of performance management must be distinguished from narrower definitions such as B. the performance appraisal or the 360 ° audit . Common to these methods is the pure performance evaluation of a person in a previous performance period (e.g. fiscal year), but not the direct focus on increasing the performance of a group in the sense of a performance enhancement.
Performance Management as a degree
Performance management courses in MBA form have so far been offered alongside work by the Professional School of Leuphana University Lüneburg and University of Ludwigshafen.
literature
- Dennis Hilgers: Performance Management: Performance recording and performance control in companies and public administrations. Gabler, Wiesbaden 2008, ISBN 978-3-8349-0932-9 .
- Ronald Gleich : The system of performance measurement. Theoretical basic concept, development and application status. Vahlen, 2001, ISBN 3-8006-2707-8 .
- Werner Gleißner : Value-oriented corporate management and risk-adjusted capital costs: risk analysis instead of capital market data as a basis for information, in: CONTROLLING, 3/2011, 165–171. (PDF; 210 kB)
- Werner Gleißner: Quantitative procedures in risk management: risk aggregation, risk measures and performance measures, in: Der Controlling-Beratung, 16/2011, 179–204. (PDF; 2.2 MB)
- Oliver Krause: Performance Management - A stakeholder-benefit-oriented and business process-based method. DUV - Gabler Edition Wissenschaft, Wiesbaden 2006, ISBN 3-8350-0340-2 .
- Peter Rausch, Alaa F. Sheta, Aladdin Ayesh (Eds.): Business Intelligence and Performance Management: Theory, Systems, and Industrial Applications, Springer Verlag UK, 2013, ISBN 978-1-4471-4865-4
Individual evidence
- ↑ Maria Laura Bono: Performance Management in NPOs: Control in the service of social goals. Nomos, Baden-Baden 2010, ISBN 978-3-8329-5082-8 .
- ↑ MBA Performance Management at Leuphana University Lüneburg ( Memento of the original from December 3, 2013 in the Internet Archive ) Info: The archive link has been inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice.
