Business administration |
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Management of a business |
Business performance management (BPM) (also known as corporate performance management (CPM) [2] enterprise performance management (EPM), [3] [4] organizational performance management, or performance management) is a management approach which encompasses a set of processes and analytical tools to ensure that an organization's activities and output are aligned with its goals. BPM is associated with business process management, [5] a larger framework managing organizational processes.
It aims to measure and optimize the overall performance of an organization, specific departments, individual employees, or processes to manage particular tasks. [6] Performance standards are set by senior leadership and task owners which may include expectations for job duties, timely feedback and coaching, evaluating employee performance and behavior against desired outcomes, and implementing reward systems. [7] BPM can involve outlining the role of each individual in an organization in terms of functions and responsibilities. [8]
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By 2017, Gartner had reclassified CPM as "financial planning and analysis" (FP&A) and "financial close" to reflect an increased focus on planning and the emergence of new solutions for financial close management. [9]
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New technology realizes corporate strategic outcomes and describes risk-management programs. [10]
Performance-management principles are used most often in the workplace and can be applied wherever people interact with their environments to produce desired effects, such as health settings. [11] How performance management is applied is important to get the most out of a group, and can improve day-to-day employee performance. It must not encourage internal competition, but teamwork, cooperation, and trust. [12]
Performance management aligns company goals with those of teams and employees to increase efficiency, productivity, and profitability. [13] Its guidelines stipulate the activities and outcomes by which employees and teams are evaluated during performance appraisal. [14] Many types of organizations use performance management systems (PMS) to evaluate themselves according to their targets, objectives, and goals; a research institute may use PMS to evaluate its success in reaching development targets. [15] Complex performance drivers such as the societal contribution of research may be evaluated with other performance drivers, such as research commercialization and collaborations, in sectors like commercial agriculture. [16] [17] A research institute may use data-driven, real-time PMS to deal with complex performance-management challenges for a country developing its agricultural sector. [18] [19]
Werner Erhard, Michael C. Jensen, and their colleagues developed a new approach to improving performance in organizations. Their work emphasizes how constraints imposed by one's worldview can impede cognitive abilities, and explores the source of performance which is inaccessible by cause-and-effect analysis. They say that a person's performance correlates with their work situation, and language (including what is said and unsaid in conversations) plays a major role. Performance is more likely to be improved when management understands how employees perceive the world and implementing changes which are compatible with that worldview. [20]
In the public sector, the effects of performance-management systems have ranged from positive to negative; this suggests that differences among systems and the context in which they are implemented affect their success or failure. [21] [22]
Employees who question the fairness of a performance-management system or are overly competitive will affect its effectiveness; those who do not feel adequately rewarded become disgruntled with the process. Without proper system planning, employees may view it as mandating compliance. [23]
In organizational development (OD), performance can be thought of as actual versus desired results; where actual results fall short of those desired is the performance-improvement zone. Performance improvement aims to close the gap between the two. [24]
Other organizational-development definitions differ slightly. According to the U.S. Office of Personnel Management (OPM), performance management is a system or process in which work is planned and expectations are set; performance of the work is monitored; staff ability to perform is developed; performance is rated and the ratings summarized, and top performance is rewarded. [25]
An organization-wide 360-degree feedback process integrated into the organization's culture can be a powerful tool for communicating and instituting change, rapidly touching all members of the organization when new markets, strategies, values and structures are introduced into the system. [26] Each year, companies spend considerable money on their performance-management systems. For performance management to succeed, businesses must continue to adapt their system to correct current deficiencies. Some aspects, such as goal setting or performance bonuses, may resonate more with employees than others. [27]
According to Richard et al. (2009), organizational-performance metrics encompass three outcomes: [28]
Organizational effectiveness [29] is a similar term.
Business performance management requires large organizations to collect and report large volumes of data. Software vendors, particularly those offering business intelligence tools, offer products to assist in this process. BPM is often incorrectly understood as relying on software to work, and many definitions suggest software as essential to the approach. [30] Interest in BPM by the software community may be sales-driven. [31] [32]
Customer relationship management (CRM) is a process in which a business or another organization administers its interactions with customers, typically using data analysis to study large amounts of information.
Knowledge management (KM) is the set of procedures for producing, disseminating, utilizing, and overseeing an organization's knowledge and data. It alludes to a multidisciplinary strategy that maximizes knowledge utilization to accomplish organizational goals. Courses in business administration, information systems, management, libraries, and information science are all part of knowledge management (KM), a discipline that has been around since 1991. Information and media, computer science, public health, and public policy are some of the other disciplines that may contribute to KM research. Numerous academic institutions provide master's degrees specifically focused on knowledge management. As a component of their IT, human resource management, or business strategy departments, many large corporations, government agencies, and nonprofit organizations have resources devoted to internal knowledge management initiatives. These organizations receive KM guidance from a number of consulting firms. Organizational goals including enhanced performance, competitive advantage, innovation, sharing of lessons learned, integration, and ongoing organizational improvement are usually the focus of knowledge management initiatives. These initiatives are similar to organizational learning, but they can be differentiated by their increased emphasis on knowledge management as a strategic asset and information sharing. Organizational learning is facilitated by knowledge management. The setting of supply chain may be the most challenging situation for knowledge management since it involves several businesses without a hierarchy or ownership tie; some authors refer to this type of knowledge as transorganizational or interorganizational knowledge. industry 4.0 and digital transformation also add to that complexity, as new issues arise from the volume and speed of information flows and knowledge generation.
A performance appraisal, also referred to as a performance review, performance evaluation, (career) development discussion, or employee appraisal, sometimes shortened to "PA", is a periodic and systematic process whereby the job performance of an employee is documented and evaluated. This is done after employees are trained about work and settle into their jobs. Performance appraisals are a part of career development and consist of regular reviews of employee performance within organizations.
Job satisfaction, employee satisfaction or work satisfaction is a measure of workers' contentment with their job, whether they like the job or individual aspects or facets of jobs, such as nature of work or supervision. Job satisfaction can be measured in cognitive (evaluative), affective, and behavioral components. Researchers have also noted that job satisfaction measures vary in the extent to which they measure feelings about the job. or cognitions about the job.
A performance indicator or key performance indicator (KPI) is a type of performance measurement. KPIs evaluate the success of an organization or of a particular activity in which it engages. KPIs provide a focus for strategic and operational improvement, create an analytical basis for decision making and help focus attention on what matters most.
A business analyst (BA) is a person who processes, interprets and documents business processes, products, services and software through analysis of data. The role of a business analyst is to ensure business efficiency increases through their knowledge of both IT and business function.
Competence is the set of demonstrable personal characteristics or KSAOs that enable job performance at a high level with consistency and minimal difficulty. Competency in human resources is an organizational criterion for excellence that encompasses the behaviors, experience, knowledge, skills, and abilities that enable employees to perform their roles effectively and reliably.
Performance measurement is the process of collecting, analyzing and/or reporting information regarding the performance of an individual, group, organization, system or component.
Greenberg (1987) introduced the concept of organizational justice with regard to how an employee judges the behavior of the organization and the employee's resulting attitude and behaviour. For example, if a firm makes redundant half of the workers, an employee may feel a sense of injustice with a resulting change in attitude and a drop in productivity.
Knowledge sharing is an activity through which knowledge is exchanged among people, friends, peers, families, communities, or within or between organizations. It bridges the individual and organizational knowledge, improving the absorptive and innovation capacity and thus leading to sustained competitive advantage of companies as well as individuals. Knowledge sharing is part of the knowledge management process.
BSC SWOT, or the Balanced Scorecard SWOT analysis, was introduced in 2001, by Lennart Norberg and Terry Brown.
Organizational behavior management (OBM) is a subdiscipline of applied behavior analysis (ABA), which is the application of behavior analytic principles and contingency management techniques to change behavior in organizational settings. Through these principles and assessment of behavior, OBM seeks to analyze and employ antecedent, influencing actions of an individual before the action occurs, and consequence, what happens as a result of someone's actions, interventions which influence behaviors linked to the mission and key objectives of the organization and its workers. Such interventions have proven effective through research in improving common organizational areas including employee productivity, delivery of feedback, safety, and overall morale of said organization.
Talent management (TM) is the anticipation of required human capital for an organization and the planning to meet those needs. The field has been growing in significance and gaining interest among practitioners as well as in the scholarly debate over the past 10 years as of 2020, particularly after McKinsey's 1997 research and the 2001 book on The War for Talent. Although much of the previous research focused on private companies and organizations, TM is now also found in public organizations.
E-HRM is the planning, implementation and application of information technology for both networking and supporting at least two individual or collective actors in their shared performing of HR activities.
Business process management (BPM) is the discipline in which people use various methods to discover, model, analyze, measure, improve, optimize, and automate business processes. Any combination of methods used to manage a company's business processes is BPM. Processes can be structured and repeatable or unstructured and variable. Though not required, enabling technologies are often used with BPM.
Market intelligence (MI) is gathering and analyzing information relevant to a company's market - trends, competitor and customer monitoring. It is a subtype of competitive intelligence (CI), which is data and information gathered by companies that provide continuous insight into market trends such as competitors' and customers' values and preferences.
Counterproductive work behavior (CWB) is employee's behavior that goes against the legitimate interests of an organization. This behavior can harm the organization, other people within it, and other people and organizations outside it, including employers, other employees, suppliers, clients, patients and citizens. It has been proposed that a person-by-environment interaction (the relationship between a person's psychological and physical capacities and the demands placed on those capacities by the person's social and physical environment.) can be utilized to explain a variety of counterproductive behaviors. For instance, an employee who is high on trait anger is more likely to respond to a stressful incident at work with CWB.
In organizational theory, organizational analysis or industrial analysis is the process of reviewing the development, work environment, personnel, and operation of a business or another type of association. This review is often performed in response to crisis, but may also be carried out as part of a demonstration project, in the process of taking a program to scale, or in the course of regular operations. Conducting a periodic detailed organizational analysis can be a useful way for management to identify problems or inefficiencies that have arisen in the organization but have yet to be addressed, and develop strategies for resolving them.
Responsible Research and Innovation (RRI) is a term used by the European Union's Framework Programmes to describe scientific research and technological development processes that take into account effects and potential impacts on the environment and society. It gained visibility around the year 2010, arising from predecessors including "ELSA" studies prompted by the Human Genome Project. Various slightly different definitions of RRI emerged, but all of them agree that societal challenges should be a primary focus of scientific research, and moreover they agree upon the methods by which that goal should be achieved. RRI involves holding research to high ethical standards, ensuring gender equality in the scientific community, investing policy-makers with the responsibility to avoid harmful effects of innovation, engaging the communities affected by innovation and ensuring that they have the knowledge necessary to understand the implications by furthering science education and Open Access. Organizations that adopted the RRI terminology include the Engineering and Physical Sciences Research Council.
Personal initiative (PI) is self-starting and proactive behavior that overcomes barriers to achieve a goal. The concept was developed by Michael Frese and coworkers in the 1990s.
Business Performance Management (BPM) [...] is also known and identified by other names, such as corporate performance management and enterprise performance management.
Confusion also arises because industry experts can not agree what to call BPM, let alone how to define it, META Group and IDC use the term 'Business Performance Management', Gartner Group prefers 'Corporate Performance Management', and others favor 'Enterprise Performance Management'.
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: CS1 maint: multiple names: authors list (link)The biggest growth area in operational BI analysis is in the area of business performance management (BPM).