Editing Performance improvement

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{{Short description|Business improvement process}}
{{for|the journal|International Society for Performance Improvement}}
'''[[Performance]] improvement''' is measuring the output of a particular [[business process]] or procedure, then modifying the process or procedure to increase the [[Output (economics)|output]], increase [[efficiency (economics)|efficiency]], or increase the effectiveness of the process or procedure. Performance improvement can be applied to either individual performance, such as an athlete, or organisational performance, such as a racing team or a commercial business.

The [[United States Coast Guard]] has published the ''Performance Improvement Guide (PIG)'',<ref name="Program 2021">{{cite web | title=U.S. Coast Guard Auxiliary / Auxiliary Leadership Development Program| date=2021-04-01 | url=http://wow.uscgaux.info/content.php?unit=AUX60&category=perform-improve-guide | access-date=2021-04-01}}</ref> which describes various processes and tools for [[performance management]] at the individual and organisational levels.

== Organisational development ==
In [[organisational development]], performance improvement is an organisational change in which the [[Management|managers]] and [[Board of directors|governing body]] of an [[organisation]] put into place and manage a program which measures the current level of performance of the organisation. It then generates ideas for modifying [[organisational behaviour]] and [[infrastructure]] which are put into place to achieve higher output. At the organisational level, performance improvement usually involves softer forms of measurement such as [[customer satisfaction]] surveys which are used to obtain qualitative information about performance from the viewpoint of customers.

The primary goals of organisational improvement are to increase [[organisational effectiveness]] and [[organisational efficiency|efficiency]] to improve the ability of the organisation to deliver goods and or services. A third area sometimes targeted for improvement is organisational efficacy, which involves the process of setting organisational goals and objectives. Performance improvement can occur at different levels: an individual performer, a team, an organisational unit, or the [[organisation]] itself.

=== Corporate or commercial ===
In business, human [[Performance appraisal|performance]] in sales, operations and [[employee engagement]] needs to be improved through psychologically [[Bounty (reward)|reward]]ing experiences "which can trigger a host of intrinsic human emotions and behaviour" as identified by [[Abraham Maslow|Maslow]]. Including rewards in a performance, improvement solution is a proven strategy to engage employees and align them with the company's goals. Stimulating awards can be cash or non-cash. The addition of non-cash awards to the total rewards package may bring out the performance potential of people because it separates a reward from being used as or perceived as ordinary [[salary]] income. Non-cash awards are thought to motivate higher achievement of and drive greater [[returns on investment]]. Cash as a reward can also be spent on day-to-day items like food or gas and does not create the increased "psychological reward" of achieving special items or points to acquire items. By connecting with all levels of the organisation{{how|date=April 2021}}, a complete reward package may amplify performance across the organisation and bring personal goals into alignment with organisational goals," according to [[Maritz, LLC]].{{cn|date=April 2021}} Reward programs supporting improvement in sales and operations can be effectively paid for from the increase in revenue or profits which flow from the program, and without spending to reward for your current levels.{{cn|date=April 2021}}<!-- was: ref>Profit Growth International</ref , which cannot be found anywhere-->

There is evidence that monetary rewards are not effective outside the context of very rote work. In some cases, monetary incentive plans may decrease [[employee morale]], as in Microsoft's stack-ranking system, where the total reward amount is fixed and employees are graded on an artificially fitted [[statistical distribution|distribution]].<ref>{{cite web|last=Foley|first=Mary Jo|title=Microsoft does away with stack ranking|website=[[ZDNet]]|url=https://www.zdnet.com/article/microsoft-does-away-with-stack-ranking/|access-date=5 December 2013}}</ref>

=== Performance improvement plans ===

If an employee's performance is unsatisfactory, the employer may set out a performance improvement plan (PIP) to help the employee improve.<ref name="shrm How to Establish a Performance Improvement Plan"/><ref name="Performance at work landaulaw"/> This may be because the employee is failing to meet the goals for their role or due to other problems such as poor behavior or interpersonal skills.<ref>{{cite web |title=What to do if you're put on a performance improvement plan |url=https://link.gale.com/apps/doc/A599307652/AONE |website=[[The Sydney Morning Herald]] (Sydney, Australia) |access-date=14 January 2022 |pages=11 |language=English |date=14 September 2019}}</ref> A PIP is usually a written document and it should clarify expectations for the employee, articulate how the employee is failing to meet them, lay out what improvements are expected, explain whether and how managers will support the employee in improving and indicate what the consequences will be if the employee fails to improve.<ref name="shrm How to Establish a Performance Improvement Plan"/><ref name="Performance at work landaulaw">{{cite web |title=Performance at work |url=https://landaulaw.co.uk/performance-at-work/ |publisher=Landau Law |access-date=14 January 2022}}</ref> The expected improvements should be specific and measurable<ref name="shrm How to Establish a Performance Improvement Plan"/><ref name="Performance at work landaulaw"/> and consequences for failing to meet them might include a transfer, [[demotion]] or [[Termination of employment|termination]].<ref name="shrm How to Establish a Performance Improvement Plan">{{cite web |title=How to Establish a Performance Improvement Plan |url=https://www.shrm.org/resourcesandtools/tools-and-samples/how-to-guides/pages/performanceimprovementplan.aspx |publisher=[[SHRM]] |access-date=14 January 2022}}</ref>

Typically, the employee's manager and someone from [[human resources]] would meet with the employee to discuss the PIP.<ref name="themuse What to Know About Performance Improvement Plans">{{cite news |title=What to Know About Performance Improvement Plans |url=https://www.themuse.com/advice/every-question-about-being-on-performance-improvement-plan |access-date=14 January 2022 |work=The Muse |language=en}}</ref> According to [[Donald L. Kirkpatrick]], a PIP should be developed by the manager and the employee together, because it requires both of their participation in order to be successful.<ref>{{cite book |last1=Kirkpatrick |first1=Donald L. |authorlink=Donald L. Kirkpatrick |title=Improving employee performance through appraisal and coaching |date=2006 |location=New York |isbn=9780814408766 |edition=2nd |pages=66–69}}</ref> The American [[Society for Human Resource Management]] recommends that "a PIP should be used when there is a commitment to help the employee improve", not just as a way to prepare to terminate the employee,<ref name="shrm How to Establish a Performance Improvement Plan"/> but some companies do use PIPs simply as a way to start a termination.<ref name="themuse What to Know About Performance Improvement Plans"/><ref>{{Cite web |title=Stealthy downsizing: All you need to know about silent layoffs happening across industries |url=https://www.theweek.in/news/biz-tech/2024/06/08/stealthy-downsizing-all-you-need-to-know-about-silent-layoffs-happening-across-industries.html |access-date=2024-12-19 |website=The Week |language=en |quote=… company starts the process of silent layoff or quiet firing, the employees are pressured to either tender their resignation or be in the PIP ….}}</ref>

== Methods ==
Performance is an abstract concept and must be represented by concrete, measurable goals or objectives. For example, a baseball player's performance is abstract as it encompasses various activities. [[Batting average (baseball)|Batting average]] is a concrete measure of a particular performance attribute for a particular game role, batting, for the game of baseball.

Performance assumes an actor of some kind, but the actor could be an individual person or a group of people acting in concert. The performance platform is the infrastructure or devices used in the performance act.

There are two main ways to improve performance: improving the measured attribute by using the performance platform more effectively, or by improving the measured attribute by modifying the performance platform, which in turn allows a given level of use to be more effective in producing the desired output.

For instance, in several sports such as [[tennis]] and [[golf]], there have been technological improvements in the apparatuses used. The improved apparatus in turn allows players to achieve better performance with no improvement in skill by purchasing new equipment. The apparatus, the [[golf club (equipment)|golf club]] and [[golf ball]] or the [[tennis racket]], provide the player with a higher theoretical performance limit.

Performance is a measure of the results achieved. Performance efficiency is the ratio between effort expended and results achieved. The difference between current performance and the theoretical performance limit is the performance improvement zone.

Another way to think of performance improvement is to see it as improvement in four potential areas:
# '''input''' requirements; e.g. [[working capital]], material, replacement or reorder time, and set-up requirements.
# '''throughput''' requirements, often viewed as process efficiency; this is measured in terms of time, waste, and resource utilisation.
# '''output''' requirements, often viewed from a cost/price, quality, functionality perspective.
# '''outcome''' requirements; i.e. did it end up making a difference.

=== Cycle ===
[[Business performance management]] and improvement can be thought of as a [[Business cycle|cycle]]:
# '''Performance [[planning]]''' where [[goal]]s and [[Goal|objectives]] are established.
# '''Performance [[coaching]]''' where a [[Management|manager]] intervenes to give [[feedback]] and adjust performance.
# '''[[Performance appraisal]]''' where individual performance is formally documented and feedback delivered.

=== Behaviour modification ===
{{see also|Behaviour modification}}
In his study of innate [[human needs]], psychologist [[Abraham Maslow]] in his concept of a [[hierarchy of needs]] identified esteem and social fulfillment, garnered by recognition by family and peers, as a basic human need, and therefore able to be tied to structured programs that increase performance. Abraham Maslow, on “Third Force” psychology{{what|date=April 2021}}, combines aspects of [[behavioral psychology|behavioural]], [[cognitive psychology|cognitive]], and emotional psychology, and accounts for the impact of culture and society on behaviour.<ref name="Horney1950">{{cite book | last=Horney | first=Karen | title=Neurosis and human growth : the struggle toward self-realization | publisher=Norton | publication-place=New York | year=1950 | isbn=978-0-393-30775-7 | oclc=285408 | page=}}</ref>

== See also ==
{{div col|colwidth=15em}}
* [[Employee development]]
* [[Feedback]]
* [[Collaborative method]]
* [[Human performance technology]]
* [[Performance engineering]]
* [[Performance measurement]]
* [[Personal development]]
* [[Operations research]]
* [[Management science]]
{{div col end}}

== References ==
{{Reflist|2}}

==External links==

* [http://www.sei.cmu.edu/cmmi/ Carnegie Mellon Software Engineering Institute CMMI].
* [http://www.ispi.org International Society for Performance Improvement].


[[Category:Business process management]]