Essentially it is a specialist function that has a primary objective of improving an organisations efficiency and control. It can be seen as an essential function that should be part of the make up of any organisation.
OandM and its associate techniques can be seen to form the basis of Business Process Reengineering and Business Process Improvement.
OandM can provide a basis for the approach to almost any project. Typically the basic steps that have to be followed can be summarised as SREDIM.
• S – Select the area/process that requires attention (often already done by the client or strategic management)
• R – Record the current situation
• E – Examine and analyse the existing situation
• D – Develop, design and evaluate alternative solutions and recommend improvement opportunities
• I – Implement and chosen solutions
• M – Maintain and monitor the implemented solution, to ensure what was intended to be implemented has been and to ensure that benefits are achieved.
Performance Appraisal
Performance Appraisal is a formal, structured system that compares employee performance to establish standards. Assessment of job performance is shared with employees being appraised through one or more of the several primary types of performance appraisals.
Generally, the aims of a performance appraisal are:
• Give feedback to employees improve subsequent performance
• Identify employee training needs
• Document criteria used to allocate organisational rewards
• Form a basis for personnel decisions-salary increases, disciplinary actions etc
• Provide opportunity for organisational diagnosis and development
• Facilitate communication between employee and administrator
• Validate selection techniques and human resource policies to meet federal Equal Employee Opportunity requirements
There are four types of employee performance appraisals used in organisations today. They are:
1. Top-Down Employee Performance Appraisal
Top-Down employee performance appraisals involve the assessment of an employee by a direct manager. This type of performance appraisals is most useful when given by an employee’s immediate supervisor.
2. Peer-to-Peer Employee Performance Appraisal
Peer-to-Peer employee performance appraisals require employees at the same level to review each other.
3. 360-Degree Performance Appraisals
In 360-degree performance appraisals, many different types of people are consulted about an employee’s performance. This includes customers, suppliers, peers and direct reports.
4. Self-Assessment Performance Appraisals
With this type of appraisal, employees are asked to rate themselves, often using the same form that a manager will use to evaluate them. Self-assessment performance appraisals are effective when combined with any of the other three types of performance appraisals.
Mystery Shopping
Mystery shopping is a technique used by several professionals and businesses in order to improve their employee’s performance and services towards the company’s customers. Secret shoppers, people who visit businesses posing as customers, evaluate the service they receive, and complete an evaluation form. Business owners and managers use these reports to insure their employees are practicing good selling techniques and providing quality service to their customers.
Incentive Schemes
Incentives schemes are rewards related to certain goals. An effective system with the right incentives can help you recruit and retain valuable staff. Moreover, such a system can reward performance and productivity and get the best out of your employees. Incentives, such as performance-related bonuses, can encourage higher levels of staff performance. The rewards usually relate to the achievement of certain goals, either personal, team or organisational, or even a combination of all.
