Admin leadership discussion 2
PAD 4432 Administrative
Leadership & Behavior
Professor Mary Lou Pasternac, MPA, CPM Week 8
Performance Management and Performance Measurement
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1. WHAT IS PERFORMANCE MANAGEMENT? 2. WHAT IS A PERFORMANCE MEASUREMENT SYSTEM? 3. WHAT DOES A PERFORMANCE MEASUREMENT SYSTEM
MEASURE? 4. HOW DOES PERFORMANCE MEASUREMENT FACILITATE
MANAGEMENT? 5. WHY DO ORGANIZATIONS DISTORT INFORMATION? 6. THE CASE STUDY OF THE SPACE SHUTTLE 7. HOW CAN WE FACILITATE THE FLOW OF INFORMATION
TO MANAGEMENT? 8. THE IMPORTANCE OF PERFORMANCE MANAGEMENT
This lecture will cover:
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} It is a method of management that is informed and influenced by data on organizational performance.
} It attempts to relate data on performance to specific management initiatives.
1. What is Performance Management?
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} It is a system for collecting, analyzing and reporting data on key aspects of organizational performance.
} Performance measurement involves the measurement of organizational inputs, work processes, outputs and outcomes or impacts.
2. WHAT IS A PERFORMANCE MEASUREMENT SYSTEM?
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} Inputs: The people, facilities, supplies, authority, money, political support and other resources that the organization obtains to do its work.
} Work processes: The sequence of tasks involved in producing internal supplies and organizational outputs.
} Outputs: The products produced by the organization.
3. WHAT DOES A PERFORMANCE MEASUREMENT SYSTEM MEASURE?
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} Deciding on appropriate measures focuses management on the definition of success: ◦ It provides a reason to pay attention to
internal operations. ◦ The measures selected communicate
management priorities and influence organizational behavior. ◦ Decisions on performance measures are
critical management decisions. They are the ground level, operational definition of policy.
4. HOW DOES PERFORMANCE MEASUREMENT FACILITATE MANAGEMENT?
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} Periodic performance reports ensure opportunities for redirection and mid- course corrections.
} Performance reporting discussions can allow junior and mid-level staff to directly communicate with senior management – reducing distortion.
} You can’t manage something if you can’t measure it. ◦ Without measurement you can’t tell if your
actions are making things better or worse.
4. HOW DOES PERFORMANCE MEASUREMENT FACILITATE MANAGEMENT? (Continued)
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} Information reporting is not an automatic, mechanical process. ◦ It is a political process requiring the buy-
in of those providing information. } People and organizations are more likely to
provide accurate information to a system if they utilize the data themselves and they see a benefit to cooperation.
} In hierarchies, control of information is often equated with organizational influence and power.
5. WHY DO ORGANIZATIONS DISTORT INFORMATION?
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} NATIONAL DESK September 26, 2003, New York Times
} Dogged Engineer's Effort To Assess Shuttle Damage By James Glanz and John Schwartz
} “New information on fatal Columbia mission shows that NASA engineers' desire for outside help in getting look at shuttle's wing was more intense and widespread than described in Aug 26th final report of board investigating February 1st accident”
6. SHUTTLE CASE STUDY
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} “New information makes it clear that failure to follow up on request for outside imagery, first step in discovering damage and perhaps mounting rescue effort, did not simply fall through bureaucratic cracks but was actively, even hotly resisted by mission managers”.
} “Five days into flight, Rodney Rocha, NASA engineer, was chosen by his fellow engineers to ask shuttle mission managers to request images of impact area, perhaps from American spy satellites or powerful telescopes on ground”.
6. SHUTTLE CASE STUDY (Cont.)
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} “He says he was rebuffed at least six times; curt e-mail to him from Columbia's flight director LeRoy Cain concludes 'I consider it to be a dead issue'; numerous engineers, most of whom have not spoken publicly until now, say discord between them and managers stands out in stark relief”.
} Why was this information not only ignored, but actively resisted by management?
6. SHUTTLE CASE STUDY (Cont.)
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} Involve key staff in developing performance measures, data collection and reporting procedures.
} Provide periodic, independent audits of the system, measures and data.
} Provide internal “911” communication channels to provide a fast track for information to management.
} Discourage reprisals for information reporting to senior management and reward information reporting when possible.
7. HOW CAN WE FACILITATE THE FLOW OF INFORMATION TO MANAGEMENT?
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} Tracking organizational inputs, work processes,outputs and impacts allows management to understand what the organization is doing and producing.
} Tracking changes in indicators allows management to track the effect of their decisions and changes in the organization’s environment.
8. THE IMPORTANCE OF PERFORMANCE MANAGEMENT