Page 8 - MS Perspectives 2014 YIR

Each of these components must be designed individually and as part of the overall
performance management system. The first three (Key Result Areas, Objectives,
and Goals) comprise the "plan component" of a performance management system,
and are a "carve out" from the strategic plan.2 The remaining three need to be
designed so that they are consistent with the first three. However, in practice this
rarely happens, especially for the evaluation component.
In most organizations, the "performance evaluation component" is designed in
isolation of the plan component. This immediately creates a problem or
dysfunctional aspect of the overall performance management system. Specifically,
it is well recognized that "what gets measured and evaluated" leads to motivation
and emphasis by people in organizations. If there is a lack of consistency between
the plan and evaluation components in any so-called performance management
system it will lead inevitably to unintended dysfunctional results and sub-optimal
behavior.
Making the Performance Management System Visible
Figure 1 shows a graphic model of the components and interrelationships of a
performance management system.

Figure 1 - The Management Systems Performance Management System

Design of Performance Management Systems
The design of a performance management system is beyond the scope of this
article. For more information see Management Systems Performance Management.

2 For more information see Management Systems Strategic Planning.

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