Strategic Performance Management - A Sample Solution

Question-express your research Will implementing strategic performance management in an organization improve performancec,in terms of profit, employees development,provide an outline of your research problem, research objectives and research questions? INTRODUCTION Strategic Performance Management is a necessary and crucial vehicle for the managing business in the present unstable business environment. The strategic performance management encompasses various indicator, frameworks and methodologies that help the organization in formulating their strategies and allow the employees to increase strategic insights and permit them to challenge the strategic assumptions, purify the strategic thinking and inform the strategic learning and decision making (Tonchia, 2000). This research paper focuses on the importance of strategic performance management for effectiveness of the organization. RESEARCH PROBLEM Developing an effective strategic performance management system is one of the most challenging tasks in an organization. It has several obstacles which make the overall system complex like: The terminology like the concepts of performance, efficiency or productivity is more often confusing and misused, thus making the performance management system unclear The present performance management measures is huge making the system complex to select the best one There are various factors that affect or impact the productivity of the organization and also influences the performance measure decisions There are various requirement that must be fulfilled for making the strategic performance management system effective It is very important for every company to overcome these obstacles to design a fully suitable and functional performance management system. RESEARCH OBJECTIVE Based on the above research problem the main objective of this paper is to identify whether the strategic performance management helps to improve the performance of the organization or not? In order to come to a positive conclusion, the objectives are to identify the advantages of strategic performance management system on effectives of the organization. RESEARCH QUESTIONS The research questions to identify the objectives of the paper are: What is the concept of Strategic performance Management? How strategic performance management system contributes to the success of business? DIFFERENCES AND SIMILARITIES OF THE SELECTED ARTICLES The articles chosen to evaluate according to the chosen research topic are: Sum Chau, V. (2008). The relationship of strategic performance management to team strategy, company performance and organizational effectiveness.Team Performance Management: An International Journal, 14(3/4), pp.113-117. de Waal, A., Kourtit, K. and Nijkamp, P. (2009). The relationship between the level of completeness of a strategic performance management system and perceived advantages and disadvantages.Int Jrnl of Op Prod Mnagemnt, 29(12), pp.1242-1265. Both the articles focuses on the why organization must focus on performance management system. The articles focus on the effectiveness of the organization through the implementation of strategic performance management system. The articles discusses about the relevance of performance management system. However the first article mostly emphasizes on the issues of performance management system and also identifying the reasons behind the lack of effective performance management system. This article identifies that the strategic performance management system recognizes the competitive advantage of the organization. This article deals with the special issues with respect to performance management at top, middle and strategic operations level. The reason behind the increase in the issues of strategic performance management system is that the senior managers are removed from their day to day activities and this creating a disconnection between the organization and the senior management. Acco rding to Witcher and Chau (2007) due to disconnection among the senior management and rest of the business firm, this will become difficult in addressing all the issues if the senior management is not involved in the strategic activities. This will lead to poor implementation of performance management systems (Sum Chau, 2008). The second article focuses on identifying the existing relationship among the completeness level of implementation of strategic performance system (SPM) and its impact on the organization. This article focuses on the advantages and disadvantages of SPM. The author suggests that the implementation of SPM have positive impact on the net profit, sales and revenue of the organization. It also helps to improve the organizational communication and increases collaboration. It also helps to strengthen the organizational focus, better the process of information exchange and sharing of knowledge. This also helps to improve the process of decision making. Overall, the SPM helps to increase the satisfaction level of employee, better the planning process, improve the quality of product and services and stronger the orientation process. However the author also discusses that if SPM is not implemented effectively then the organization can face huge internal competition. The process is bureaucratic and too expensive. In this process the performance indicators are subjective in nature creating it as unreliable. From advantages of this process management can learn about the completeness of SPM implementation and can convince the personnel about its benefits to the organization (de Waal, Kourtit and Nijkamp, 2009). ANALYSIS OF THE METHODOLOGY Research methodology is the process of utilizing various methods to collect data for making an effective decision of business. The above mentioned articles have also utilized some of the research methods to make an effective conclusion about impact of strategic performance management system on the organization. In the article The relationship of strategic performance management to team strategy, company performance and organizational effectiveness, the author has focused on secondary data collection method. The research is carried based on five different case studies which comprises of issues of team performance management. All the five articles deals with the issues of performance management at strategic operation level, middle management level and top management level. The articles also discuss the impact of SPM on the performance of the company, team strategy and effectiveness of the organization. This case study method helps the author to analyze the real world problem of SPM using five case studies. From these five articles it is concluded that organization must focus on achieving the strategic performance management system which would help to improve the performance of the company. These case studies have helped to close the gap and bring attention about the team performance managemen t system. In the article The relationship between the level of completeness of a strategic performance management system and perceived advantages and disadvantages, the author focuses on primary data collection through quantitative data analysis and also focuses on secondary data using the quantitative data analysis. The qualitative data is gathered through literature review. It discusses the use and implementation of SPM and is tested by collecting the quantitative data by conducting 52 interviews from 17 Dutch organizations. The article concludes that there exists relationship between the benefits that the organizations have received from the implementation of SPM and the completeness of the implementation. The article confirms that implementation of properly designed SPM and its usage helps to improve the organizational results. The case study method provides a holistic and detail investigation of the research and different measurement techniques can be utilized in this process. However, case study method can be utilized only for small data sets. Here the real life data means that the organization or the organizations chosen as a data source. Since the data revolves around small sets thus proper empirical techniques cannot be used which might make it difficult to meet the statistical significance requirements (Remenyi, 2012). Alternatively, utilizing the mixed method that is both qualitative and quantitative method, the researcher can utilize the strengths of one method to overcome the weakness of the other method. This can provide strong evidence for deriving the conclusion through corroboration and convergence of findings. This helps to increase the generalizability of the findings. However it is a time consuming method. It can become difficult for a single researcher to conduct the mixed method research ( Axinn and Pearce, 2006). Thus based on the advantages and disadvantages of the research methods, the researcher has decided to follow the mixed method approach as this would help to make an effective conclusion about the implementation of SPM and its benefits on the organization. The researcher will make sure that the sample considered is large as it would give more precise and clear result. REFERENCES Axinn, W. and Pearce, L. (2006). Mixed method data collection strategies. Cambridge: Cambridge University Press. de Waal, A., Kourtit, K. and Nijkamp, P. (2009). The relationship between the level of completeness of a strategic performance management system and perceived advantages and disadvantages. Int Jrnl of Op Prod Mnagemnt, 29(12), pp.1242-1265. Remenyi, D. (2012). Case study research. Reading, UK: Academic Publishing International. Sum Chau, V. (2008). The relationship of strategic performance management to team strategy, company performance and organizational effectiveness. Team Performance Management: An International Journal, 14(3/4), pp.113-117. Tonchia, S. (2000). Linking performance measurement system to strategic and organisational choices. International Journal of Business Performance Management, 2(1/2/3), p.15. Witcher, B. and Sum Chau, V. (2007). Balanced scorecard and hoshin kanri : dynamic capabilities for managing strategic fit. Management Decision, 45(3), pp.518-538.