importance of adopting performance management and measurement systems on DEWA

Posted: December 21st, 2022

Final Individual Assignment: importance of adopting performance management and measurement systems on DEWA

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Final Individual Assignment: importance of adopting performance management and measurement systems on DEWA

It has become increasingly essential for firms to create structures of firms to create systems and structures of performance measurement, which does not only reflect the expanding intricacy of the business environment but also assess their strategic reaction to this intricacy. The need for appropriate performance management is a continuous matter, which should be addressed by the leadership of all firms (Yang 8). The study examines issues which are key to the comprehension and valuation of performance measurement within public entities. The study examines literature that describe key aspects of performance measurement and measurement systems. The analysis indicates that performance management is a vital process that organizations need to take seriously. The review shows that performance managers use a wide range of tools that help them to steer all activities in the department effectively. The review shows the importance of being conversant with how the various approaches work as a leader in this of performance management to achieve the best results. The one in charge of operations in this area should choose the approaches that work best for them, but the most suitable way to go about it would be to use as many methods as possible to get a clearer view of how the various aspects of the organization perform. The study refers to performance management and measurement systems at the Dubai Electricity & Water Authority (DEWA) and reveals how the government entity has made significant strides in incorporating the concepts of performance management, and how this helps to facilitate how the utility works. The recommendations included in this research may be of significant help to DEWA and other firms that seek to improve their performance measurement and measurement systems. The paper contends that performance managers need to understand how the various tools of performance management and measurements systems work and be able to implement them to achieve the best results from their work.

Literature Review

Business leaders embrace a wide range of practices and tools in a bid to improve their practices. One of the widely adopted techniques is performance management, which serves as a corporate management tool that assists organizational managers to monitor and assess how employees conduct their functions (Lin and Lee 85). The goal of performance management is to create an environment where workers can perform to the best of their capability and generate high-quality work in the most effective and efficient manner. The approach enables organizational leaders and workers see one-on-one about aspirations, objectives, and career advancement, encompassing how individual employees align their activities with the firm’s chief mission (Lin and Lee 85). Overall, performance management in public entities perceives individuals in light of the broader workplace structure.

Performance managers use a wide range of tools to achieve the targeted aspirations in this field. For instance, managers can utilize tools such as developing and measuring objectives, milestones, and goals. They also seek to describe what appropriate performance looks like and create activities to measure outcome, especially through the use of key performance indicators (KPIs) that evaluates a firm’s prosperity verses a set of goals or industry trends. KPIs can be financial, including gross profit, net profit, or the bottom line (Bhatti et al.). The indicators could also be factors such as present ratio in terms of cash and liquidity, or measure of revenue generation. However, performance managers have to follow the SMART model in their development of KPIs. The KPIs need to be specific by being clear regarding what needs to be achieved, and why it is essential (Bhatti et al.). The KPIs should also be measurable to a defined level. It is also essential that the KPIs are achievable with the key factor being that the group should have the capacity to deliver on a specific indicator. Also important is that the KPI should measure something that increases performance and measures something. Effective KPI setting increases the chance of achieving the set aspirations. Another appropriate tool that performance managers use to determine how the firm performs and whether it works towards fulfilling its aspirations is a balanced scorecard. The strategic management performance metric enables organizations identify and advance their internal structures to facilitate external outcomes (Bhatti et al.). A balanced scorecard enable leaders in this area to assess past performance information and offers organizations with response on how to improve decision-making in future (O’Boyle 52). Nonetheless, performance managers can use other available frameworks that would help them excel in this area.

Using continuous improvement increases the likelihood for managing performance in the most suitable manner. Radnor and McGuire describe continuous improvement as a contemporary, human-centered technique to fostering, assessing, and increasing employee performance (246). It allows the firm to form a trusted environment in which workers feel motivated and empowered to take charge of their own advancement. Continuous performance management is essential because it promotes an outright two way engagement between leaders and their followers. A continuous performance evaluation structure encourages smooth appropriate affiliations which generates better outcomes as days pass by. The process happens regularly depending on the management’s choice (Radnor and McGuire 250). The practice could take place monthly, weekly, or even daily depending on the firm’s needs, size, and demands. The timeframe could be more or less than the identified intervals, but does not go beyond the conventional yearly appraisals. Continuous performance is increasingly becoming prominent because evidence suggests that one to one engagement decrease imprecise decisions that could emerge either from workers or key departments (Radnor and McGuire 254). Furthermore, continuous assessment by team leaders increase efficiency and transparency throughout the firm. In addition, continuous performance management is essential in public firms because it encourages real time response, which is convenient, thereby saving time and cost. Business leaders need to engage more with their employees through continuous performance management because the practice promotes direct and easy communication. 

Businesses leaders in charge of performance management can use the performance pyramid and performance prism to facilitate their practice. Performance pyramid borrows from the notion that a firm functions at diverse levels with different aspirations (Neely et al. 8). Nonetheless, it is essential that these diverse levels help and work together with each other. Thus, a performance pyramid connects the organizational strategy with everyday operations, which makes it easier to know areas that perform well and those that need improvement. On the other hand, a performance prism helps to determine performance through the eyes of stakeholders (Neely et al. 9). Increasingly satisfied stakeholders suggest that the organizational capabilities, processes, and strategies are effective and likely to foster performance. On the other hand, decreased satisfaction suggest that the firm needs to make significant improvement in its activities. Therefore, those in charge of performance management need to understand how both concepts work and know how to apply them at their places of work to improve how the group handles its performance.

Also essential is benchmarking, which enable performance managers to compare organizational metrics and activities with that of other operators, often a competing organization. However, a firm can also compare particular metrics with industry peers or other firms across the globe – to know how and the establishment needs to transform in order to enhance performance (Tanjau et al. 505). Thus, organizations or performance managers who wish to use this approach should understand the various types that they can use to find needed information. Performance benchmarking is one of the techniques that may help to identify performance gaps and enact effective mitigation measures. The team in this case requires KPIs or standard measures well as ways of getting and analyzing data to acquire data that would direct decision-making (Tanjau et al. 505). Internal and external benchmarking are also possible approaches when using this technique. Internal benchmarking compares metrics from within the organization while external benchmarking focuses on metrics that emanate from outside the company. The manager or team responsible for performance management need also to be conversant with the requirements of practice benchmarking, which entails collecting and comparing qualitative data regarding how a practice is performed through technology, processes and people (Tanjau et al. 506). Knowing how each of these forms work increase the likelihood for witnessing positive results.

Evidence from DEWA

DEWA is a state-owned entity established in 1992 with the primary objective of establishing, managing, operating, and maintaining electricity production and water distribution and desalination. Its mission is to crate and uphold water resources and supply clean and safe drinking water (DEWA). It works to help achieve the vision of Dubai government to encourage sustainable production by supplying energy and practicing and encouraging water efficiency and focus in alternative forms of energy (DEWA). Other than focusing on its key operations in the external environment, activities in the internal environment are equally important. The group pays considerable attention to performance management because it understands the need to deploy such techniques in achieving impressive results. Specifically, DEWA pays attention to key concepts of performance management that enable it to achieve increased efficiency in this area. The groups considers and uses methods such as offering timely feedback, continuous improvement and appraising performance, and planning performance as some of the performance management techniques that it uses to facilitate operations in this department. Khan and Shah support planning performance terming it as being important in all performance management practices (13413). Furthermore, the organization values engaging its members, especially those who work in various capacities to be keen on how they work to achieve impressive outcomes. The group values the process and has instituted a distinct body to lead the initiative. The close attention and adequate resources the establishment dedicates to this area provides an opportunity to make steady strides towards finding amicable remedies to emerging concerns or constraints. The organization seems to be on the right path in the way it handles its performance management and measurement systems but it should not relent in its quest to make further improvement.

Recommendations

Whereas DEWA seems to be on the right path in terms of performance management, the group can embrace other effective concepts that would present the opportunity to witness improved performance. Those in charge of the practice at the facility should consider leveraging the suitable performance metrics. In doing this, the manager needs to get a clear view of the present state of processes and problems, and to set future aspirations (Fryer et al. 481). Transparency is essential and performance metrics should be selected and communicated appropriately so all players are attuned to the prosperity of the exercise. The team need to come up with meaningful metrics that are appropriate for addressing the matter at hand. Moreover, the information utilized to measure progress and growth should be organized well because it is possible to witness confusion when dealing with a large volume of data (Fryer et al. 483). Another approach that would improve how DEWA and other firms handle their performance management practices is to take advantage of the growing technological prowess. Utilizing digital avenues to transmit information is a suitable method to keep workers motivated. When targets and KPIs are clear to the entire team, it affects real transformation in the way people perform their duties. It encourages members of staff to be more focused on these metrics and promotes a healthy state of competitiveness. Besides, incorporating an avenue that uses gamification features can motivate workers at all aspects of the company to share relevant information fast enough (Fryer et al. 483). Using these and other strategies that have proved effective may help corporations to improve their performance management practices and overall performance.

Conclusion

The study shows that performance management and measurement systems are critical aspects for an organizations to excel. Excelling in this area informs the firm whether it is headed in the right path and likely to achieve its targets or not. The practice offers the chance to introduce mitigating measures that would restore the firm to the right direction. A review of various relevant literature reveals that managers and companies that make significant strides in this area are those that pay attention to the key tools that help to go about the process effectively. Spherically, managers in charge of operations in this area need to explore techniques such as setting KPIs, using balanced scorecards, and engagement in continuous improvement, using performance pyramid and performance prism, and engaging in benchmarking. DEWA is an example of an institution that acknowledges the value of performance management and measurement systems and has enacted approaches and measures to help it excel in this area. Whereas the group seems to be doing well in this area, it is still can embrace additional features that would improve its performance now and in future. The group and others that want to increase their operations in this area need to pay more attention to setting clear metrics that are based on the SMART model. It is also important to communicate the metrics to workers using the most suitable forms. Technological growth offers a chance to achieve tremendous advancement in the way public establishment handle their performance management. Using technology to facilitate operations in this area encourages workers to be more committed to the process, which ultimately contribute towards better outcome and increased competitiveness. Institutions should not relent in their attempts to improve their performance management practices because the exercise is important and influences how the company performs in the long run.

Works Cited

Bhatti, Ishaq, Hassan Awan and Ziwan Razaq. “The Key Performance Indicators (KPIs) and their Impact on Overall Organizational Performance.” Quality & Quality, vol. 48, no. 6, 2014, doi:10.1007/s11135-013-9945-y

“DEWA.” DEWA, 2022, https://www.dewa.gov.ae/en. Accessed 12 Apr. 2022

Fryer, Karen, Jiju Antony and Susan Ogden. “Performance Management in the Public Sector.” International Management of Public Sector Management, vol. 22, no. 6, 2009, pp. 478-498.

Khan, Khurram and Attaullah Shah. “Understanding Performance Measurement through the Literature.” African Journal of Business Management, vol. 5, no. 35, 2011, pp. 13410-13418.

Lin, Jie-Shin and Po-Yu Lee. “Performance Management in Public Organizations: A Complexity Perspective.” International Public Management Review, vol. 12, no. 2, 2011, pp. 81-96.

Neely, Andy, Chris Adams and Paul Crowe. “The Performance Prism in Practice.” Measuring Business Excellence, vol. 5, no. 2, 2001, pp. 6-12.

O’Boyle, Ian.  “Performance Management and the Balanced Scorecard in the Modern Non-Profit Organisation.” Corporate Board: Role, Duties & Composition, vol. 7, no. 1, 2011, pp. 48-56.

Radnor, Zoe and Mary McGuire. “Performance Management in the Public Sector: Fact or Fiction?” International Journal of Productivity and Performance Management, vol. 53, no. 3, pp. 245-260.

Tanjau, Adrian, Laurentiu Frajila, and Cosmin Grigore. “Benchmarking and Performance Management.” Economia. Seria Management, vol. 13, no. 2, 2010, pp. 504-511.

Yang, Ho. “Then Trend Analysis of Public organization management.” Chief Trial Hearing 28, no. 8, 2009, pp. 4-17.