An Innovative Approach to Business Performance Management
The evolution of business sector in the modern world creates the need for companies to ensure that they perform better than the competing firms especially customer satisfaction. Most companies set aside funds specifically for the market research so as to identify the opportunities and threats that may affect the performance of a business. Operating a company in the modern business environment is easy due to the use of information technology, but businesses are also faced with the challenge of meeting the demands of customers while maximizing the shareholder’s wealth (Amit & Zott 53). The concept of business performance management is crucial in ensuring that companies meet the expectations of all the stakeholders (Davenport 136). The concept entails applying managerial and analytic processes to facilitate achievement of set targets or goals. It involves all the activities that are related to success in business including training of the employees and ensuring accountability in utilization of funds. Different countries have applied the concept of business performance management to achieve better results in the business sector. This paper discusses approaches in business performance management in Australia as a way of enhancing the nation’s business sector.
The concept of business performance management has benefited the business sector in Australia and other nations by informing the individuals about the right way to run businesses. Individuals in the business sector apply the concept to identify the areas that should be improved to realize maximum profits from their ventures. Performance management requires the company to hire employees who have the skills and experience to operate an organization. The employees need adequate knowledge on the factors that affect the performance of a business and the components that make up the business performance system (Galliers & Leidner 85). A creative and innovative mind is required to realize the set objectives of the business. It is thus important for the businesses to encourage creativity and innovation by allowing the employees to play part in the decision making process of the company. Making the work schedule flexible is also another way that the companies can enhance creativity of the employees. Performance management is also concerned with issues that affect the morale of employees such as compensation and performance appraisals. A work force that is motivated produces desirable results as they enjoy the work environment (Simons 29). Similarly, when the employees are not motivated they may be involved in activities that drag the success of business such as absenteeism and laxity. It is important for an organization to utilize its resources effectively to achieve a competitive edge in the market, and this includes the human resources.
The paper uses the exploratory mixed research method that combines both the qualitative and quantitative approach. The design is applicable in the study mainly because little has been researched. The speed at which business is evolving ahs made the researchers unable to carry out adequate studies on the same. The qualitative aspect of the design is helpful in identifying the reasons that a business may opt to implement business performance management concepts in its operation and not the traditional approaches. The quantitative aspect of the design is important in showing the pattern sin the identified variables thus leading to an accurate interpretation of data. Data collection is both in qualitative and quantitative techniques so as to enhance accuracy of the results. The company employees in three Australian companies will collect some of the data through interviews. The sample will be five employees and one manager in each of the three companies. The interviews will use open-ended questionnaires to enhance the variety of answers. The quantitative data will be collected using online surveys as they are cheap and fast.
The companies that have embraced the concept of business performance management perform much better relative to the ones stuck on traditional managerial techniques. Appraisal of employee performance can either improve or reduce their productivity (Brown & Osborne 101). Companies that embrace the concept of business performance management are more likely to motivate their employees from the appraisals because they value the input of the employees to the company (Rolstadas 70). The employees from these companies also reported to enjoy their working environment due to factors such as flexible work schedule, rewards to the most innovative employees and fair promotion policies (Hill, Jones &Schilling 89). This is as a result of implementing the business performance management concept (Onetti ,Zucchella, Jones and McDougall-Covin 350). It is thus crucial for business organizations to implement the business performance management to survive in the modern competitive business environment.
Business performance management is an important concept that all businesses should embrace to improve their performance. The employees are among the primary resources that influence the performance of an organization thus it is important for companies to ensure they provide them with the necessary working conditions. The employees also need to understand the expectations of the company through the trainings that are conducted as proposed by the business performance management concept. The concept also informs the users about the best managerial practices that enhance accountability and good use of resources thus leading to a better competitive position in the market.
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