My initial reaction to the concept "the best-performing companies
worry less about performance and more about their organizational
capabilities" (Bititci, 2015), I was rather skeptical if this idea is
entirely accurate. I do feel as if companies whom perform well, focus
on the input provided by all forms of employees from any level, as
well as implementing an organizational culture focused on
collaboration and feedback. "Organizational culture affects all
aspects of your business, from punctuality and tone to contract
terms and employee benefits. When workplace culture aligns with
your employees, they're more likely to feel more comfortable,
supported, and valued."(Wong 2020) These aspects contribute to a
company’s success, but so does performance management.
Performance measurement is essential for fostering organizational
improvement. The significance of having an effective performance
measurement process has only grown as businesses large and small
realize that long-term success depends on reaching goals with limited
failure in today's highly competitive business world. The importance
of performance measurement isn't always easy to justify, but it's
necessary for performance improvement in the long run. Effective
performance measurement helps companies identify their strengths
and weaknesses, top high performers, areas for improvement, and
helps set benchmarks with historical data. I understand the aspects
the individual is attempting to portray, which is focusing on what the
organization is capable of rather than setting targets which can act as
limits.
A strong culture is a common denominator among the most
successful companies. All have consensus at the top regarding
cultural priorities, and those values focus not on individuals but on
the organization and its goals. "Leaders in successful companies live
their cultures every day and go out of their way to communicate their
cultural identities to employees as well as prospective new hires.
They are clear about their values and how those values define their
organizations and determine how the organizations run." (SRHM
2019) Organizations that are aligned in goals and the mission show
entrust in the leaders and a winning culture. The most important
success for any organization is having the buy-in culture at 100% and
focusing on investing in the employee’s capacity to provide insight
and suggestions that excite them. With employees seeking a
workplace that intertwines with their belief systems, common vision,
and purpose, it befalls upon the leaders to shape an organization that
unifies their people around a shared cause.
Company A offers some concerns about employee retention and
maintaining a strategic plan for their employees. The HR Director
states' "we’ve got a strong workforce, from the custodians and
cleaning crews all the way to the pilots and management team.
Everyone who needs to take annual refresher courses gets them …
but we have no budget for extras. Sometimes I worry that we’re
falling behind and that we’re losing our most valuable employees."
This individual makes it clear that the refreshers are not enough to
keep employees educated, limiting the capacities of the organization
as they cannot budget in the on-going education. The HR director
made it clear that the company does not make substantial
investments in training and development beyond what is strictly
required for licensing and safety. She feels that this limits the
opportunities for creativity and innovation, but she also understands
budget restrictions. Among her concerns are the limited
opportunities for upward career mobility and too few career path
opportunities in the company. This is a sign that the organization
lacks focus on their employee’s education or rewarding their hard
work with competitive pay. The COO mentions that he is also
concerned about recruitment, especially for pilots and for skilled
technicians. Because they operate in a great location, they have not
been keeping up on their compensation levels, and this may make
recruitment difficult soon.
Company B offers an enticing future with the new perspective
brought by the president. Her strongest beliefs are that the way to
move the company forward is through the adoption of an agile
culture, empowering employees, and placing emphasis on innovation.
This is evident as the firm has recently entered into a strategic
partnership with a software company and that they will soon bring
new levels of travel convenience to the customers right in the palms
of their hands. Notably, the operations and maintenance manager
also believe in the culture of the organization. This individual stated
“the company has some very seasoned individuals in the
maintenance and operations areas, several of whom have prior
military experience. They pride themselves on a positive
performance record, especially pointing to the statistic that their
aircraft, while older than many fleets, are well maintained and
average a 90% availability rate, consistent with industry averages.
The crew is innovative and hardworking, but there has been
substantial turnover in recent years. Several current mechanics are in
probationary status, still acquiring their technical certification
credentials. There is some concern that the core of expertise resides
in the employees that are approaching retirement age and that there
is inadequate knowledge transfer." After taking a look at both
interviews, we see that Company B is more focused on capabilities
over performance, while Company A is the other way around. The
company’s results show that Company A is more success financial
and performance wise than Company B, seeing an increase in their
business, rather than a decrease in sales like Company B. This proves
that organization capabilities do not always translate to a well-
performing organization.
Performance measurement: Simplify your process with the right
tools
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. (n.d.). Retrieved February
16, 2022, from https://www.shrm.org/ResourcesAndTools/tools-
and-
samples/toolkits/Pages/understandinganddevelopingorganizationalc
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Team, J. B. & C. (n.d.).
Performance management strategies: How
they impact culture
. Strategy Software for Planning & Execution.
Retrieved February 16, 2022, from
https://www.cascade.app/blog/performance-management-
organizational-culture
