Integration between levels
The communication and integration between the three levels of organisational performance can be limited. Most of the times, strategic performance management efforts are lead by the executive team, operational performance management by group managers and individual performance management by the HR department, mostly with limited interaction between them, if at all.
This can be attributed to various constraints, both general to the performance management itself and specific to organisations. Management does not see performance management as an integrated discipline used at various organisational levels, but as a subcomponent of strategic, operational and HR management. An integrated approach, linking all levels of performance management becomes a necessity for both research and practice to facilitate the understanding and usage of performance management systems (Brudan, 2010).
Integration between the performance management levels is preferred as it will enable better outcomes for organisations and it will act as a catalyst for the establishment of a standalone discipline that in turn will accelerate advances in academic research. A research model that can be used to further explore integrated performance management approaches in organization.
Source: Brudan (2010)
In the recent years, a key trend was the integration between strategic performance management and individual performance management facilitated by the introduction of tools such as the Balanced Scorecard. Organisational goals became reflected in individual goals and individual measures became aligned with organisational performance measure, in an effort to increase the accountability of all employees to the execution of the organisational strategy (Brudan, 2009).
Downscaling to performance measurement subprocess, systematically integration and alignment all levels within the organization is considered to represent an important role, in order to evaluate whether or not the organisational strategy is attained (University of Pretoria, 2007). Measuring organisational performance plays a very important part in translating corporate strategy into results, there being a need to develop a paradigm for integrating strategy formulation and performance measurement in organizations (Pun & White, 2005).
- Brudan, A. (2010), Rediscovering performance management: systems, learning and integration, Measuring Business Excellence, Vol. 14, No. 1, pp. 109-123.
- Brudan, A. (2009), Integrated Performance Management: Linking Strategic, Operational and Individual Performance, available at: http://www.pma.otago.ac.nz/pma-cd/papers/1090.pdf (accessed 12 August 2010).
- Pun, F., K. & White, A., S. (2005), A performance measurement paradigm for integrating strategy formulation,International Journal of Management Reviews, Vol. 7, No. 1, pp. 49-71.
- University of Pretoria (2007), Organisational performance measurement, available at: http://upetd.up.ac.za/thesis/available/etd-05162007-140318/unrestricted/04chapter4.pdf (accessed 12 August 2010).