Performance management and operational research: A marriage made in heaven?

This paper sets out a simple framework with which to examine the performance management process. It examines the organizational context within which performance management is undertaken, and notes that it becomes most important within hierarchical organizations that allow considerable autonomy amongst devolved units. The paper argues that performance management should embrace four broad functions: formulation of strategy; development of performance measurement instruments; interpreting such measures; and encouraging appropriate organizational responses to performance information. The paper notes that operational research has made significant contributions to all four functions, and suggests that the performance management movement offers enormous possibilities for OR.