Key Factors to Successful Performance Improvement - Essay Example

Running Head: Performance Improvement Performance Improvement [Institute’s Table of Contents Table of Contents 2 Introduction 3What is Performance Improvement? 3 Types of Performance Improvement 5 Benchmarking 5 Total Quality Management (TQM) 7 Critical Comparison between Benchmarking and TQM 9 Key factors to Successful Performance Improvement 10 Difficulties faced by Organizations in Implementing Performance Improvement Measures 12 References 14 Introduction This paper intends to have critical comparison between the different approaches such as benchmarking and total quality management, which has come under development and used as means to improve performance. Furthermore, the paper also aims to classify the key factors that lead the organizations in producing successful performance improvement. Lastly, the paper elucidates the difficulties faced by an organization in striving to implement performance improvement measures. What is Performance Improvement? As the world has penetrated into the epoch of technologically advanced era, the means and ways of doing businesses has expanded on to a global platform. However, the fundamental element of being successful and gaining competitive edge over others have also escalated amongst the firms due to which they tend to perform with a much more productive approach (Baxter & MacLeod, 2008, pp. 3-7). Therefore, with reference to the globally competitive world of commerce in the current times, performance measurement and performance improvement have become an integral aspect of consideration for every organization in order to be at a height of success. The phenomenon of performance improvement comes under application to individual performance as well as organizational performance (Baxter & MacLeod, 2008, pp. 8-13). Since centuries, enterprises (whether small or big) have undergone the process of performance improvement in order to have prolific outcome. Performance improvement is a concept through which the organization evaluates and assesses the result of a certain process and procedure. This process comes under transformation that can lead to increased output, efficiency, and effectiveness (Baxter & MacLeod, 2008, pp. 8-13). The organizational development is the ultimate goal for an enterprise, which means to have improved and increased organizational effectiveness and efficiency that can comprehensively fulfill the needs and demands of the customers. Consequently, performance improvement comes under practice by the management wherein the program determines the existing performance levels, which can transform the organizational behavior of the employees and structure (through ideas, strategies, models and framework), thus producing higher productivity (Baxter & MacLeod, 2008, pp.13-15). The systematic process of performance improvement takes account of desired performance and identifies the potential gaps between desired and actual performance of the employees and the organizational structures. In addition, the practice of performance management also recognizes the core problems, based on which the interventions come to design and implementation that can resolve the problems. Lastly, the performance improvement methods also measure the changes in the performance of the employees and the organizational structures (Baxter & MacLeod, 2008, pp. 56-60). While looking deep down onto the process of performance improvement, it is prudent to note that formal and informal actions are the two components on which performance improvement is based. The informal actions come under practice for the employees or systems, where small amount of improvement in performance is the need and the problem can come under resolution in the early stages. Coaching and counseling are two of the primitive means of informal actions of performance improvement. While on the other hand, oral reminders, written reminders, final warnings, and termination are few of the components of the formal actions for performance improvement for an employee (Carleton, 2009, pp. 1-5). The performance management works with the primary goal not only to decipher the performance of the related problems, but also to identify the performance opportunities that can lead to attainment of the preferred results at organizational level. To put it succinctly, performance management is a process that measures the occurred changes through feedbacks and evaluation method and based on it, plan and implement supplementary changes on continuous basis (Carleton, 2009, pp. 9-13). Nonetheless, within the numerous tools for performance improvement, Benchmarking and Total Quality Management (TQM) have come under distinction as two of the crucial and vital tools. Types of Performance Improvement Benchmarking Benchmarking has come under definition as "the continuous process of identifying, adapting, and understanding the best practices and process that would facilitate the firm to achieve superior performance" (Perumal, 2006, pp. 30). Benchmarking is one of the procedures that create comparative studies for the organization in contrast to the industry set standards or the best practices of other organizations or industries. Corporations typically measure the elements of quality, time, and cost in the process of benchmarking. Enterprises carry out the process of benchmarking in order to understand the factors that lead to performance improvement of the overall organization to achieve an edge over others (Coers, Gardner, Raybourn & Higgins, 2002, pp. 1-5). Benchmarking engage the course of action of evaluation of the product, services and operations of the organization in comparison to the standards and the competitors position. Furthermore, benchmarking is an approach that facilities the organization to define and establish the targets, priorities and functions in accordance to the customer demands that can aid the organization in gaining the competitive advantage over others present in the marketplace (Coers, Gardner, Raybourn & Higgins, 2002, pp. 1-5). Benchmarking has also come under reflection as the best practice, as it involves the evaluation of various aspects of processes of the enterprise from the set standards that are the best practices to make an organization above all others. The key and principal objective of benchmarking is to develop an insight about the current position of the business or organization though the processes of evaluation against the best practices that can help them identify the areas of performance improvement. Benchmarking involves the measurement of the products, services and the processes. Additionally, the improvements that come under identification with this process can be incremental improvements (continuous) or dramatic improvements (business process reengineering) (Coers, Gardner, Raybourn & Higgins, 2002, pp. 13-16). Internal, competitive, functional and generic are the four fundamental types of benchmarking. The internal benchmarking involves the measurement of the processes within the organization such as business units, while the competitive benchmarking is the evaluation of the performances or processes against the competitors. The functional benchmarking comes under application in a broader context such that it assesses the similar processes within an industry. Lastly, the generic benchmarking is the process of making comparison of the operations and functions between unrelated and disparate industries (Kozak, 2004, pp. 3-5). The stages involved in the process of benchmarking for continuous improvement incorporates planning, analyzing, developing, improving, and reviewing. The management initiates the process of benchmarking with the planning phase, where they select the benchmark organization to perform the action of measurement. They determine the measurement methods, units, indicators, and data collection approach. In the stage of analyzing, the management examines the inconsistencies, discrepancies, and gaps. Based on the analyses, the management presents with results for the areas of improvement and makes improvement plans or new procedures in the improving stage of the benchmarking. The monitoring and evaluation of the plans and progress of ongoing benchmarking is the last stage referred as reviewing (Perumal, 2006, pp. 30-31 & 64-65). Total Quality Management (TQM) When the employees do not have the authorization or power to correct the product quality of inadequacy or they are unwilling to perform their work (based on the set standards), then the organization experience the poor and exacerbated quality of the products and services. This results in sales decrease (which means that corporations lose their customers) and competitors get an opportunity to take over the lost customers. Nonetheless, this emerge the need of Total Quality Management, which is primarily concerned with the improvement of the organizational quality at every level (Charantimath, 2003, pp. 6-10). Total Quality Management is one of the effective techniques that the management employs for the improvement and enhancement of the quality of processes and products or services on a constant basis. Few common TQM practices have come under consideration as cross-functional product design, process management, supplier quality management, customer involvement, information and feedback, committed leadership, strategic planning, cross-functional training, and employee involvement (Charantimath, 2003, pp. 6-10). From the analysis, it has come to notice that Total Quality Management is an administrative approach that measures the success on the long-term basis through the customer satisfaction. Moreover, the process of Total Quality Management implementation involves all the people of the enterprise in the process of improving and enhancing the procedure, products, services, and culture of the organization in order to accomplish the overall company goals and objectives (Charantimath, 2003, pp. 6-10). W. Edwards Deming is one of the initiators who evolved the concept of Total Quality Management. Deming has explained several principal and essential points in the implementation of Total Quality Management, which helps the organizations to enhance their quality and productivity. To put all aspects in brief, Deming explained that each member must contribute in the transformation process, education and training of the employees is essential, leadership and managements commitment is imperative and people ought to work as a team. All of these factors would prove to be fruitful in achieving improved performance, thus resulting in better organizational performance (Suganthi & Samuel, 2004, pp. 42-45). The concept of Total Quality Management provides with an understanding that in order to make certain that the organizations achieve success; it must follow the eight key elements of Total Quality Management. These elements have come under division into foundation that includes ethics, integrity, and trust; building blocks that comprise of training, teamwork and leadership; connecting block that refers to the communication and roof embracing recognition. The foundation promotes the openness, fairness, and sincerity, as it enables contribution by each member. The building blocks are the bricks that come under placement in order to reach the roof of recognition. However, the mortar of communication is the binding aspect that connects everybody (Suganthi & Samuel, 2004, pp.59-64). In conclusion, Total Quality Management leads to activities that are conducive to organizational performance, due to the reason that it involves day-to-day management and management of strategic business policies (Suganthi & Samuel, 2004, pp. 54-57). Critical Comparison between Benchmarking and TQM Since Benchmarking and Total Quality Management are the two methods used by organizations in order to have overall enhanced and improved performance of the organizations, the commonalities and differences are pivotal to highlight that can shed the light on both the aspects. While looking at the benchmarking approach of performance improvement, benchmarking is one of the beneficial concepts that can lead the organization towards gaining competitive edge. Benchmarking helps, the organization to understand the current position of the enterprise in the marketplace and have comparative studies of the practices followed by the major competitors. One of the benefits that an organization can leverage from benchmarking is that it encourages innovation through establishing the standard of excellence for processes, products, or services. Indeed, corporations opt for benchmarking as a mean for performance improvement as it allows the organizations to have best practices with effective goals and objectives. This approach also leads to change in the perceptions and viewpoints (Bagad, 2008, pp. 4-2 – 4-6). Benchmarking is a continuous process (a smaller component) of the Total Quality Management that determines and weighs the current processes against the influential and dominating organizations. This means that it is one of the intervention programs of the Total Quality Management process, rather a substitute for the measurement of the performance improvement (Bagad, 2008, pp. 4-2 – 4-6). While looking at the other end of the spectrum, Total Quality Management refers to the process employs strategic planning that can lead to the improvement in the overall performance of the business processes and products. It is used in a broad context as it not only concentrates on the quality of products, but also lays key emphasis on the needs and costs of quality for its customers, employees, suppliers, and so forth. Benchmarking is the process used in the implementation of Total Quality Management as a small portion. To put in simple words, benchmarking serves as a fundamental tool for the execution of TQM (Spellman & Whiting, 2009, pp. 341-342). Benchmarking and Total Quality Management is both a process that involves teamwork and joint effort by the employees and the management due to the reason that both the processes engage the action of change in the current practices that influences the overall organizational performance (Spellman & Whiting, 2009, pp. 341-342). Whilst looking at the differences between the two approaches of the performance improvement, it has come to observation that Benchmarking requires the quantitative measurement of the subject matter, whereas Total Quality Management requires the qualitative measurement of the identified problems (Bagad, 2008, pp. 4-2 – 4-6). Key factors to Successful Performance Improvement In order to have successful performance improvement, instead of lingering until the end of the evaluation period to communicate the need for improvement, the management should commence the performance management intervention on immediate basis when they realize that the employee is not meeting the performance standards (Holzer & Schwester, 2011, pp. 223-225). Senior management support and commitment, perseverance, resource allocation of staff, training, and appropriate culture are few of the essential components that can lead to organizational success if executed in the most precise manner (Holzer & Schwester, 2011, pp. 223-225). Numerous sources of information have exhibited the idea that training is one of the pivotal and most effective interventions of the performance improvement. In fact, training has come under consideration as the solitary method of improving the performance carried out by numerous organizations in the past. This is because the performance improvement has a connection to numerous problems such as unclear job expectations, lack of performance and lack of knowledge or skills for which the training of the employees has come up as a solution that can abridge the gap and lead to improved performance (Parmenter, 2010, pp. 13-15). Organizational culture plays a substantial role in acceptance to the change amongst the employees of the organization. By developing a culture that performs and follows equal opportunity towards the contribution for the development of the procedures and standards within the organization, it would promote and motivate the employees that they are being valued. This would also ensure their commitment towards their performance that is meeting the standards of the performance measurement. The culture of the organization should come under continuous changes with reference to the technologies that can better reflect and lead to achievement of the goals and objectives of the enterprise (Parmenter, 2010, pp. 55-58). Difficulties faced by Organizations in Implementing Performance Improvement Measures Although the performance improvement framework provides with a shared definition, approaches, and tools that facilitates the enterprise to resolve the performance related issues, yet several issues and barriers come along while implementing such measures. Resistance to change is one of the most common, pervasive and widespread barrier that is encountered by majority of the organizations when implementing performance improvement measure. The enterprises meet this barrier of resistance to change because any kind of change creates a feeling of fear of insecurity amongst the employees, due to which they tend to oppose to any new happenings. Furthermore, the unwilling attitude to learn new things also leads to resistance towards the change. However, management can overcome this issue by implementing and practicing a number of dynamic and innovative approaches (English, 2004, pp. 6-8). Another leading obstacle that hinders the organization from the implementation of performance management measures is the lack of commitment from either side that is the leadership or the employees. This is because it has come to an observation that the employees contemplate that performance improvement is only a measure that is obligatory to perform that can make them meet the accreditation requirements of the organization. Besides, for them this process is not related to the process of improvement mechanism (English, 2004, pp. 6-8). Extensive investigations have also brought the fact to limelight that the organizations face various difficulties while implementing the performance improvement measures that include peer reviews. Employees hesitate and resist towards participation in performance improvement activities because many of the employees believe that their peers are not capable and qualified enough that they can perform the performance evaluation of them and create judgments (Organisation for Economic Co-operation and Development, 2003, pp. 38-39). Numerous sources of information has also elucidated the fact that numerous people consider the process of performance improvement as a complicated, problematic and cumbersome, due to which they are likely to resist towards these processes. The resistance leads to creating difficulty in implementing the performance improvement measures (Organisation for Economic Co-operation and Development, 2003, pp. 38-39). References Bagad, V.S. 2008. Total Quality Management. New York: Technical Publications. Baxter, L. F., & MacLeod, A. M. 2008. Managing Performance Improvement. London: Taylor & Francis. Carleton, R. 2009. Implementation and Management of Performance Improvement Plans. New York: Human Resource Development. Charantimath. 2003. Total Quality Management. New Delhi: Pearson Education India. Coers, M., Gardner, C., Raybourn, C. & Higgins, L. 2002. Benchmarking: A Guide for Your Journey to Best-Practice Processes. New York: APQC. English, G. 2004. Managing Information and Human Performance: Strategies and Methods for Knowing Your Workforce and Organization. New York: Human Resource Development. Holzer, M. & Schwester, R. W. 2011. Public Administration: An Introduction. London: M.E. Sharpe. Kozak, M. 2004. Destination Benchmarking: Concepts, Practices, and Operations. Chicago: CABI. Organisation for Economic Co-operation and Development. 2003. Peer Review: An OCED Tool for Co-operation and Change. New York: OECD Publishing. Parmenter, D. 2010. Key Performance Indicators (KPI): Developing, Implementing, and Using Winning KPIs. London: John Wiley and Sons. Perumal, P. K. 2006. Quest for Excellence through Globalisation. New York: Sterling Publishers Pvt. Ltd. Suganthi, L. & Samuel, A. A.2004. Total Quality Management. London: PHI Learning Pvt. Ltd. Spellman, F. & Whiting, N. 2009. The Handbook of Safety Engineering: Principles and Applications. New York: Government Institutes. Read More