Organizational Strategy’s relation with Performance Management

The Performance Management system of an organization is measured for its efficiency through the organization's capacity and capability to adapt to changes and keep the individual goals of employees in alignment with the organizational goals. Performance Management and Organizational Strategy are two different but equally important concepts for the efficient management of an organization or business. The two are interlinked in the process of management in order to achieve the desired goals of the organization. The successful execution of an effective organizational strategy of an organization is critically influenced by an efficient performance management system. Is it possible to have a successful business when the employees are unhappy or have stagnant growth? The answer to this question will explain the relationship between organizational strategy and performance management in simple words.

To understand this relation between the two mentioned concepts it is necessary, to first understand each of them individually. So, what is Performance Management? How and why is it important for a business? How is the efficiency of a performance management system measured? And many more questions like these about organizational strategy as well would aid in understanding their relation. Specializations and certification courses are offered worldwide to understand these concepts in detail and in India, there are numerous Performance management certifications and strategic performance management courses.

Performance Management

Performance Management has several meanings depending on the various factors in the business world. It can generally be defined as the process of establishing, creating and maintaining a work environment that enables employees to perform to the best of their abilities. It includes the following actions:

●     Writing job descriptions that clearly define the role using a recruitment plan, with the help of a proper selection committee

●     Shortlist most suitable employees from the list of applicants for the job

●     Conduct Interviews 

●     Using tests and assignments to analyze the employee's profile thoroughly before the appointment

●     Provide a job offer to the most desirable candidate and negotiate terms

●     Job orientation and welcoming of the new employee

●     Define career paths and ensure the right opportunities are provided

●     Appraisal and benefits must be awarded

●     Mentorship and coaching must be provided

●     Exit interviews assistance