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Individual vs organisational performance management – what's the difference?

Posted by Nicky Hawkins on Feb 21, 2019 10:22:00 AM
Individual Vs Organisational Performance Management – What's The Difference-1

Performance management is a system that allows companies to track how its employees are doing. Businesses must take stock of the contribution that different teams and individual employees are making towards the bottom line – with a system of appropriate KPIs. If a company is to benefit from its human resources, it must understand how they fuel progress.

How productive are employees? What budget is necessary for a project? Such questions drive performance management. They give useful insights into an organisation's weaknesses and strengths. Performance management plans can be individual or organisational. Understanding the difference between the two is essential to every manager.

What Is Individual Performance Management?

Individual performance management systems monitor how much each employee puts in, compared to the cost of employing them and the expectations of their role. The appraisal method provides companies with critical information about the productivity of its workers. Employees are some of the biggest resources for an enterprise, and it is imperative that they are used effectively. Personal performance management evaluates an individual to learn more about their competencies, weaknesses and skills.

Individual performance management is meant to help a business get the most from its workers. Knowing the skills of employees makes it less complicated to assign them to the appropriate roles. Their weaknesses present a chance to train them and improve. A well implemented personal performance management system facilitates growth in an employee. Companies can create ways to entice their employees to achieve maximum productivity.

Organisational Performance Management

Companies have other resources that drive their operations besides employees. Organisational performance management monitors these resources to ensure that they are put to good use. Overhead costs are examples of the resources to track in this system. The amount that an enterprise is paying for overhead costs will determine the profit margins. Part of performance management in such an instance would include lowering overhead expenses to boost profits.

Some businesses use SWOT analysis as part of their organisational performance management. Doing this gives insights into how a company is fairing in a particular marketplace. Gauging the performance of an entire organisation (or department within an organisation) makes it possible to adjust policies and procedures to facilitate progress. For example, if performance management shows that a brand is bringing in profits, then a company can plan to expand its geographic reach.

Doing It Right

If a performance management system is to get any decent outcomes, it must factor in the company's objectives and strategy. These elements serve as metrics to see how far a business has gone in meeting its goals. An effective performance management strategy should look at specific areas of a business. For instance, managers can compare how the customer service team holds up against sales. Evaluating individual areas can point out weaknesses that are specific to that division, which may require different solutions.

Performance Management Software

Clearview offers a way for managers to track the performance of employees and the organisation as a whole. Our Strategy and Performance Software Suite is equipped with a performance overview that a manager can use as a scorecard. Managers can apply different metrics to check the performance of specific areas such as product innovation. The right performance management solutions will simplify the tasks of tracking a company's goals. To find out more about how our software solutions can benefit you, arrange a free demo today.

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Topics: Performance management

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