Performance Management

Performance Management Definition: Helps to contribute to the effectiveness of the management of individuals and teams in an organisation, as to to help with the performance of the organisation. To achieve this it needs to be made that everyone shares the same understanding of objectives and targets. The ‘Big Idea’ (Purcell, 2003) From some research which was carried out at the University of Bath, Purcell et al found that organisations who shared a common goal, as in all of the individuals shared the same beliefs, then the company would do better. This was known as the ‘Big Idea’. This could be anything, from believing that customers were the most important aspect, to believing that quality was the key, for example Toyota set out with the intention of providing cars which were not only high quality, but were good value for money, and over the course of their life, they have generally kept to that ‘Big Idea’. This section of Performance Management can be linked quite nicely into Diversity, as that section of an organisation also looks into the affect people have on the effectiveness of a business. You can have a very diverse workforce, but this may mean that people do not think alike and therefore common goals, and the ‘Big Idea’ are not built upon. AMO (Purcell, 2007) AMO A – Ability M – Motivation O – Opportunity This theory described by Purcell shows us that people have the ability to learn and will want to work in organisation where their abilities are seen, built upon and used in a way which benefits both them and the organisation....