Executive Summary

‘Problems’’ are something  very notorious they either leave late or cling on forever .The major issue is how should they be combated and wiped out so as to meet the desired results which are badly held back due to them. The key job is to ardently view the factors that stampede the progress of the company and then remove them forever.

All external and internal factors like environmental, stakeholders motivation, interest etc have to be determinedly observed and efficiently found out which sector is not given due importance and so is hampering the yield of the company holistically. The company’s drivers i.e. the stakeholders, employees, managers etc all have to be on the alert and keep in view all the factors impeding  their company’s  accomplishments.

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The company has to follow the most up-to-date fashion so that int is able to incorporate all the new developments and advancements which can make their company more prosperous. The company can take the initiatives of mergers and acquisitions, changes in investment portfolio or introduction of performance management decisions etc

All the tools of performance Management System are ordered and structured, it only depends how well they are devoured into the workflow of the organization.

Need of Strategic Moves for the Company



Decision for Implementation of Performance Management



Performance Management System Tools



Overall Impact of Performance Management System



Critical Incident Analysis is basically the interpretation of any problem or challenge to the company. Problems, be it in any forms pose a possible threat to the company and might cripple it completely.The question is however, how effectively we should combat it so as to meet the desired results. The key job is to keenly observe the factors that hamper the reputation and standing of the company (Senior & Fleming 2005).

All external and internal factors like environmental, stakeholder’s motivation, interest etc have to be devotedly observed and see which sector is not given due importance and so is hampering the productivity of the company holistically.  The company’s drivers i.e. the stakeholders, employees, managers etc all have to be on toes and keep in view all the factors that are directly or indirectly impeding  their company’s  achievements and accomplishments. There are instances when even a single predicament neglected can knock over the overall foundations of the firm. Close inspection of the all the sensitive factors is such an imperative issue which has to be followed religiously. Organization is based on a lot of contributing factors and its not a single factor driven organization hence, all factors have to collaborate and coordinate with each other so as to generate collective progress .All possible issues, expected or unforeseen have to be looked into closely .All intricacies have to be focused and proper detailing has to be done every minute so that the company does not lag behind in every possible prospering avenue. Company’s development or image that reflects out whether as a successful or unsuccessful one, is all churned out through the intensity or degree of efforts given towards maintaining its image and reputation. People that are the drivers of the organization can either make or break the organization.

Need of Strategic Moves for the Company:-

The companies need to be fully aware of the factors that can possibly create chances for development and if negated can make the organization inefficient. The company has to all the time vigilant in all dimensions to not miss out on anything which could make it a leader in the market. The company has to be up to the minute so that the internal as well as external image confirm to the fact that the company is well managed and well acquainted with the standard expectations of today. The company can take the initiatives of mergers and acquisitions, changes in investment portfolio or introduction of performance management decisions etc. Firstly we would assess the market, we would see as to what is happening externally and internally that is affecting our company.The initiative which we have taken is it generating positive results or not .The customers would be analyzed and even competitors’ strengths and weaknesses would be evaluated. Effective decisions would be taken in totality as to see whether the decision of Performance Management System implementation is purposeful or not and how is it being perceived by others. Company’s resources are well looked into (assets, intellectual Property, People etc) and what are the company’s capabilities.

Assessing the competition is the next steps which includes the general market condition of the business .Customer’s problems and complains with the current offerings of the company are also an evident step while analyzing the organizational motives. The area of need where the company can perform profitably should be also tapped (Heizer & Render1991).

External analysis includes examination of opportunities and threats that exist in the environment. Customer Analysis (unmet needs), Competitive Analysis (cost structure, strategies, performance evaluation etc), Market analysis (projected growth, profitability, Distribution system, trends etc), Environmental Analysis (Technological, governmental, economic, cultural, demographics, information –need areas etc).

Decision for Implementation of Performance Management:-

If a company is facing persistent issues, internally as well as externally and eventually excavates the fact that it is the performance which is getting negated and needs to be focused and inspected by and large and hence, there is a dire need for performance management.

We always have this notion that performance management is for employees only. Like Setting goals for them, monitoring employee’s achievement of those goals, sharing feedback with them, evaluating their performance, rewarding the sincere employees and firing the uninterested and dispassionate employees.

Performance management applies to organizations as well. This includes performing activities recurrently to establish organizational goals, supervise the progress towards the goals and make necessary adjustments to achieve those goals more effectively and efficiently. Performance management is applied well can exterminate all the factors that can jeopardize the company’s proficiency.

Performance Management System Tools:-

When there is a quest of improving the performance of the organization it is very useful to regularly conduct assessments of the existing performance of the organization. This will give feedback from all the internal and external groups like stakeholders, employees etc. Assessments can be planned, systematic and explicit or can be unplanned and implicit. Assessments can classically use tools like comprehensive questionnaires, SWOT analysis, diagnostic models etc along with comparison of results to various “best practices“, benchmarks or industry standards. Once the assessments of the organization are conducted it provides a platform where results can be analyzed.The results will then show what factors are willing to contribute in a positive move and which factors are unwilling. Suggestive study can further tell the ways through which unwilling circumstances or forces can be converted to loyal forces.

Diagnostic models suggests  the type of practices occurring in the organization, the order in which these practices should be occurring, standards of performance for various realms (individual, teams, projects, processes, functions, programs and the organization) etc. If proper and well designed network integration would be there then no predicament are possibly to be noticed.

Balanced scorecard which focuses on four indicators which include customer perspective, internal business processes, learning, growth and financials can be adopted to monitor the progress towards organization’s strategic aspirations.

Benchmarking can be done by comparing our standards with other organizations in order to gain outlook on organizational performance. Business process reengineering can be done which radically re-designs the organization’s structure and processes (Lewis & Slack 2003).

Continuous Improvement Initiatives can be taken which efficiency focuses on improving customer satisfaction through incremental and continuous improvements to processes.Removing unnecessary activities and variations and taking a positive step towards quality initiative. If need of any cultural change (i.e. changing basic values, norms, beliefs, etc.) is essential and can create effective ways to facilitate crisis management then should be readily adopted. Knowledge Management that focuses on collection and management of critical knowledge in the organization which is needed to increase its capacity for accomplishing results can be adopted. It also depends on how well the enhanced critical knowledge is applied therein. Organizations should practically be a learning abode and should comprise of overall comprehensive process which assures improved performance.

Management by objectives (MBO) can be implemented which aligns the company’s motives and subordinate objectives all over the organization. Hence employees get well-built input to identify their objectives and moreover time lines for completion etc. This includes continual tracking and feedback to reach the objectives.

Outcomes should be also evaluated to assess the impact and functioning of their services and products on their target communities. Single and even multiple based program evaluation should be done to notify the issues e.g.  to increase effectiveness of programs and its processes and thereby cut costs, even assess the program goals as to see whether they were reached or not etc.

Strategic planning to identify strategic direction which includes vision, mission, values and overall goals can be implemented. Direction can be tailed if implementation of associated action plans, multi level goals, objectives, responsibilities and timelines takes place. This is yet another way through which performance management in any organization can be implemented and beneficial outcomes can be expected (Schwartz 1999).

Total Quality Management which is set of management practices can be implemented as it ensures whether the organization is time and again meeting or exceeding customer requirements. TQM a quality initiative focuses on process management and controls as means of incessant improvement. Statistical Process Control, Quality Circles are other approaches which can be implemented to generate quality performance overall.

Overall Impact of Performance Management System:-

The environment analysis would include five areas namely the economic, technological, political-legal, socio-cultural and future. All these factors are very important and even if one of them is sidelined crisis can potentially erupt. Economic trends have a lot of impact on the business activity (Bacal 1998). The performance management system would effectively curtail unemployment as it would have already studied the company’s overall efficiency and even of its employees. All possible tools of performance management can let the authorities know the efficiency of the workforce. The quality personnel who want to sincerely benefit the organization are kept with the organization and the unfaithful ones are driven out. The company won’t then have to face setbacks of high interest rates and low disposable incomes because it would be effectively maintaining all the resources.

Technological concerns would be expertly viewed because whatever latest trend would be floating in the market would be timely seeped into the system of work. The training of the employees and everyone in the organization will lead to positive affect to the organization. Even the existing technology is well managed and efficiently utilized because of the hands on information of the organization’s personnel (Watts 2003).

The government regulations are met timely and make every possible way through which the can be made to work in synchronization of the organization’s motives. The taxes and other incentives that are being developed affect the strategy development positively.

The socio-cultural trends in the market are closely inspected .There implications are taken into consideration. The demographic trends (growth rate, income and population shift) represent an opportunity not a threat for the organization. TQM assures that the working methodology is in sync with customer’s expectation.

Future events and significant trends are paid keen attention. All the key areas of uncertainty which may have a potential impact on the strategy are all focused through performance implementation tools like Knowledge Management and Continuous Improvement Initiatives.

The stakeholders who have heavily invested in the organization would want to generate maximum out of the organization’s working. They would never want that the company should be penalized or should have a tumbling image. Its not always that financial status counts in the image building of the organization but its even the repute and image which it creates with time. Stakeholders are the risk bearers, the minimum the risk the higher the faith they have in the organization. Statistical Process Control and balanced scorecard leads to utmost efficiency and profitability of the organization, which in return effect positively on the stakeholders as well who are an evident part of the organization. The stockholder’s motivation is seen to be really high because they know that proper performance management implementation is done in the organization which won’t hamper their efficiency and contribution. (DeCenzo 2004)

The internal analysis is also well managed. The goal of internal analysis is well met as the organization’s workflow and nature is understood at length and in depth. The resources and the capabilities are articulated as there is effective execution of performance implementation criteria. All intangible and tangible resources are organized and humans are made determined to give in their best through proper accomplishment of learning techniques and Continuous Improvement Initiative programs.

The tangible resources (financial resources and physical assets) though easiest to identify and evaluate give a proper depiction in the Firm’s financial statement as everyone in the organization in performing in the best possible way. The intangible resources like brands, image etc, which are a main source for a competitive advantage also flow in positively as the performance implementation control is affirmatively taken by individuals and thus positive contribution from their side is to be seen. The human resource which is of a major importance to the company also induce maximum of their skills, knowledge, reasoning and decision making abilities. The human resource when is satisfied and adapts to the objectives of the organization then the organization is bound to succeed. The resources can’t be productive on their own but instead the resources have to collaborate closely together within teams .All the possible tools mentioned above knit the resources together and hence nothing possibly goes waste. The firm’s capacity for undertaking any productive activity becomes possible and organizational capability is therefore achieved.

The power is not misused because there is not only sincerity factor that prevails around but even the checking mechanism is very active. No one can exercise undue pressure and power on any subordinate and even the subordinates have full liberty to voice out their opinion. The management has implemented a 360 degree program which allows feedback from all levels and possibly everyone. The power is not misused and dictated but the direction is taken towards depiction of proper leadership style instead.

Every individual in the organization has a positive impact on him or her and contributes genuinely towards the organization’s success and prosperity. The individuals when in any organization are not well informed and oriented then their impact towards the organization is negative and company even faces dilemmas of heavy losses.


Development is every Organization’s dream and is of supreme importance. Critical Incident Analysis is done to infer any problem or challenge to the company. Problems in any form can trigger a possible peril to the company and might ruin it entirely. We should combat it well so as to meet the desired results. The key job is to keenly observe the factors that impede the status and reputation of the company.

Performance Management initiative which is undertaken guarantees a lot of benefits to the organization if taken affirmatively (Kotler &Keller 2002) The implementation of such events can only confirm positive results only if they are implemented the right way. There can be ample of events which make claims to develop the company but it’s again how effectively these events are inculcated. Performance management implementation is not a single procedure but requires a lot of steps to work in harmonization. Contribution from every individual is a must. Making everyone happy shouldn’t be the motive but making them satisfied is what should be practiced. It is so because making happy is a temporary based phenomena but satisfying someone is a long run beneficial approach. The environmental factors, the stakeholders, interest, power and impact can be made certain only when occurrence of any event is made through proper analysis and then taken into consideration .All the tools of performance Management System are well laid out it only depends how well they are utilized and involved into the working methodology. (Johnston 2002).

Tools like Strategic planning identify strategic direction which encompasses vision, mission, values and overall goals can be implemented Direction can be even extended through implementation of associated action plans, multi level goals, objectives, responsibilities and timelines. The need for improving the performance of the organization it can be beneficial to even conduct assessments of the current performance of the organization. The internal as well as external resources or groups would give their meaningful feedback which can take the organization on the steps to deep-rooted and long established repute and success. (lovelock & Wirtz 2004)


Bacal, R. (1998). Performance Management. New York: McGraw hill Company.

DeCenzo, R. (2004). Fundamentals of management: essential concepts and applications. 4th Edn, Upper Saddle River, NJ: Pearson Prentice Hall.

Johnston, R. (2002). Basic Focus Strategies for Services. The Phoenix Companies, Inc.

Heizer ,J. & Render, B. (1991). Production and Operation management: Strategies and Tactics. 3rd Edn, Boston:Allyn & Bacon Int.

Kotler, P. & Keller, K. L. (2002). Marketing Management. London. Prentice Hall.

Lewis ,M & Slack, N( 2003). Operations Management critical perspectives on Business & Management.volume 4 ,Routledge ltd.

Lovelock, C. & Wirtz, J. (2004). Services Marketing: people, technology, strategy. 5th Edn, Singapore: Pearson Education.

Schwartz, A. E. (1999). Performance Management. Barrons Educational Series,

Senior, B. & Fleming, J. (2005). Organizational Change. 11th Edn, Upper Saddle River, NJ: Pearson Prentice Hall.

Watts, MM. (2003), Technology: taking the distance out of learning. San Francisco: Jossey-Bass.


Balanced Scorecard:-Focuses on four markers, including customer perspective, internal-business processes, learning and growth and financials, to observe advancement toward organization’s strategic goals

Benchmarking: Using typical measurements in a service or industry for evaluation to other organizations in order to gain perspective on organizational performance.

Business Process Reengineering: Aims to increase performance by fundamentally re-designing the organization’s structures and procedures, including by starting over from the ground up.

Continuous Improvement:-Focuses on improving customer contentment through continuous and incremental improvements to processes, including by removing redundant activities and variations. Continuous upgrading is often perceived as a quality initiative.

Knowledge Management: – Focuses on collection and management of vital knowledge in an organization to increase its aptitude for achieving results. Knowledge management often includes far-reaching use of computer technology. In and of itself, this is not an overall wide-ranging process assured to improve performance. Its efficacy toward reaching overall results for the organization depends on how well the enhanced, significant knowledge is applied in the organization.

Management by Objectives (MBO):-Aims to align goals and secondary objectives throughout the organization. Ideally, employees get strong input to categorizing their objectives, time lines for completion, etc. Includes ongoing tracking and feedback in process to reach objectives. MBO’s are often professed as a form of planning.

Total Quality Management (TQM):- Set of management practices throughout the organization to guarantee the organization consistently meets or exceeds customer requirements. Strong focus on process measurement and controls is way to continuous improvement. TQM is a quality program.



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