Performance management
What is “Performance management”?
▪ A focus on the internal performance of the business as a unit.
▪ Determine and assess coordination and integration of operation, continues monitoring of
performance levels, ensuring quality control advantages, improving profitability and requires
strategic management / planning by Top management.
How to improve profitability:
▪ Reduce wastage of resources and duplication.
▪ Encourage workers to increase performance.
▪ Generate higher turnover by increased production.
▪ See problems as opportunities.
Role of Top Management
▪ Plan business operation which is:
✓ Specific: Supply detail of how, what, when, where, etc.
✓ Measurable: Accurate and objective.
✓ Achievable: Realistic and economical.
✓ Recordable: Communicate with other and apply KISS-principle.
✓ Timeliness: Future orientates and include contingency planning.
▪ To organize availability of resources to execute plans.
▪ To give guidance and direction to ensure optimum performance.
▪ To monitor progress towards the achievement of goals.
Roles of other departments
Human resources
▪ Responsible of supplying a quality workforce.
▪ Focus on continues training and skills development.
▪ Ensure harmony.
▪ Keep workforce motivates.
▪ Maintain communication with other department to get /give feedback.
Purchasing
▪ Buy goods / services required by other departments.
▪ Identify and negotiate with suppliers.
▪ Ensure highest quality of goods purchased.
▪ Keep purchasing costs as low as possible to maximize profits.
Business Studies Performance Management | 1
What is “Performance management”?
▪ A focus on the internal performance of the business as a unit.
▪ Determine and assess coordination and integration of operation, continues monitoring of
performance levels, ensuring quality control advantages, improving profitability and requires
strategic management / planning by Top management.
How to improve profitability:
▪ Reduce wastage of resources and duplication.
▪ Encourage workers to increase performance.
▪ Generate higher turnover by increased production.
▪ See problems as opportunities.
Role of Top Management
▪ Plan business operation which is:
✓ Specific: Supply detail of how, what, when, where, etc.
✓ Measurable: Accurate and objective.
✓ Achievable: Realistic and economical.
✓ Recordable: Communicate with other and apply KISS-principle.
✓ Timeliness: Future orientates and include contingency planning.
▪ To organize availability of resources to execute plans.
▪ To give guidance and direction to ensure optimum performance.
▪ To monitor progress towards the achievement of goals.
Roles of other departments
Human resources
▪ Responsible of supplying a quality workforce.
▪ Focus on continues training and skills development.
▪ Ensure harmony.
▪ Keep workforce motivates.
▪ Maintain communication with other department to get /give feedback.
Purchasing
▪ Buy goods / services required by other departments.
▪ Identify and negotiate with suppliers.
▪ Ensure highest quality of goods purchased.
▪ Keep purchasing costs as low as possible to maximize profits.
Business Studies Performance Management | 1
