Improving Organisational Performance Through Performance Management System

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Improving Organisational Performance through Performance Management System



I would like to thank my supervisors, friends and family, without their support this research study would not have been possible.


I adjudge that the entire content of this dissertation is entirely my own work; the content used in this dissertation has not been submitted before in any educational institution and represents my own opinion.

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In this research study, the purpose was to find out how the organizational performance can be improved by employing performance management system. The organization selected for this research was Indian oil and Gas Company i.e. Oil and Natural Gas Corporation Limited. The main focus of the research is on performance managment systems used by this company and how the performance of the organization can be affected by the PMS. Mixed methodology as used in which questionnaire and interviews techniques were used.






Background of the research1

The impact of the BSC on the organizations5

Aims and Objectives6

Research Questions6

Dissertation Layout7

Gantt chart8


Organisational Performance9

Developing a Successful Performance Management System11

The importance of performance management12

Identification of the Performance Evaluation Methods13

PMS: BSC Impact on the organizations14

Limitations of using BSC as PMS16

Performance Evaluation Methods17

Methods for Performance Evaluation18

Employee Performance Management18

Organization and performance culture20

Organizational Culture and Organizational Performance Research21



Background of the Research

Performance defined as performance as a tangible base of economic or financial performance factors, such as revenue, expanded work force, stock prices, and net income. Schwartz (2009, 75) used a multidimensional performance measurement system that included the monitoring of goals, key measures, results, and expectations, a focus on problem areas, a strategic decision-making process, and key financial measures, such as operating income, sales growth, return on investment and equity, and net cash flows. While Schechner (2008, 119) definition of performance included profitability and ROA, sales and revenue growth, market share, product development and innovation, quality, and employee satisfaction. Performance management is the process of collecting, analyzing, evaluating, and communicating information relative to individual's job behaviour and results. Such a system provides a good testing ground for the effectiveness of a competency-based organization as competencies are among the key constructs that are 'collected', 'analyzed', 'evaluated' and 'communicated' in performance management. The organizations hope to achieve the following performance objectives:

To establish a performance management process based on competencies,

To establish strong staff development capabilities,

To train staff and supervisors by a similar unit of analysis (i.e., competencies) to encourage consistency, and

To foster collaboration between staff and supervisors in completing job profile

According to Rosner (2001, 35), the performance management has four components, these components are as following:

The researcher defined that performance standards is the organizational or any system performance standards establishment. Not only this has the establishment of goals and targets as well as the establishment of the indicators for the improvisation of public health practiced.

According to the researcher, performance measurements are the applications which are used for indicating and measuring performance

Key Performance Indicators is the evaluation system, which helps organizations to identify the strategic and tactical (operational) ...
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