Ultimately, it is the goal of every business and organisation to be as successful as possible in what they do. The picture of success might differ from one organisation to another, but typically speaking, it includes enhanced productivity and profitability through more efficient ways of working. There is no miracle recipe to apply to achieve these results – every organisation needs to consistently and continuously monitor, evaluate, and adapt their processes to match the demands of the marketplace in order to maintain success. This is known as organisational performance management.
In very broad terms organisational performance management is the process of ensuring that the resources available to a company are used optimally to achieve the company’s objectives. Different companies have access to different sets of resources, and there are as many objectives as there are different companies. As such, it should be clear that organisational performance management would cover a range of processes and solutions to best manage resources for their specified resources.
One of the most commonly used processes is that of employee performance management. Correctly applied, this can unlock a wealth of potential among an organisation’s employees and the impact will be felt throughout the business. However, there are many other organisational processes that could also benefit from relevant performance management, such as job profiling, internal communication structures, engagement, and work management processes. The goal is to get all aspects of a business or organisation working in unison towards achieving the same goal, with the least amount of effort and resources wasted.
Because organisational performance management is aimed at improving the overall performance of an organisation, the results of effective intervention and management will typically be felt across the entire organisation and should be visible in the overall results. These include:
Better Employee Engagement
Performance management is a tool to develop, inspire and empower employees. By better understanding what challenges they face that cause their work to fall below a benchmark, or who to reward for overperforming, it’s possible to give employees the tools and motivation they need to excel. It provides clarity and focus, which creates a work environment that is less stressful and frustrating and more supportive. This, in turn, decreases employee turnover and the related costs and disruption to the organisation.
Lower Overhead Costs
As mentioned in the previous point, a company can save on employee turnover costs – a challenge for most companies – through effective organisational performance management. The same goes for the optimal management of all resources. The better a resource is managed, the more productive with less waste the result is – and thus fewer overhead costs to the organisation.
Increased Profit Margin
Lower overhead costs and increased productivity means an increased profit margin. Even if this is not the main objective that is focussed on when addressing processes, it is often an inevitable result of optimised performance.
Improved Business Reputation
Improving performance means improving your reputation within your industry. The more efficient a business is in its operation, and the better its employees perform, the better that organisation is perceived by clients, suppliers, partners, and stakeholders.
When it comes to organisational development and performance management, Orgro is the go-to authority in South Africa. For close to four decades now, we’ve been helping organisations across the country to get people to work better, together.
Our expert team of industrial psychologists, psychometrists, business experts and coaches specialise in people development, and our insight and understanding of people allow us to activate optimism and potential. At the same time, we always focus on clearly defined outcomes to provide value – value that is visible and measurable.
We do this through a variety of services that range from performance policy development to performance management planning, goal setting, job profiling, leadership coaching, employee training support, rewards schemes, and psychometric assessments to measure organisational values, culture, engagement and more. Get in touch with the team at Orgro today to find out how we can assist you in unlocking the full potential of your team, and to boost the way your business performs. The benefits are endless… and so are the possibilities.
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