Investigating design targets for effective performance management system: an application of balance scorecard using QFD

Purpose An effective performance management must track level of employee engagement, ensure employee feedback on all aspects and ensure that the people act on that information. Also, it must ensure accessibility of essential conditions to perform. Considering the challenges associated with existing performance management system, present study attempts to discover factual expectations from the employees. The paper also establishes required conditions for fulfilling such expectations. Design/methodology/approach Present study attempts to discover factual expectations from the employees using the Balance Scorecard approach (BSC). Furthermore, using Quality Function Deployment (QFD), relation between employers' expectation and requirements necessary to fulfill such expectations has also been determined. Findings The suggested model has been developed as House Of Performance Management (HOPM) outlining potential leveraging points for enhancing the performance, based on which immediate actionable measures for effective and efficient performance management can also been advocated. The HOQ suggested in this paper can be source of reference while developing performance management system for an organization. Besides, it can help the Human Resource team to discover strategic opportunities and set targets. Originality/value Effective goal setting, pooled with a method to track progress and identify obstacles, contribute to attainment of bottom to top line results. However, designing and implementing such performance management system has been associated with many challenges like lack of top management support, perception of the process as time-consuming, failure to communicate clear and specific goals and expectations, lack of consistency, etc. (Managing employee performance, 2019). Hence most organizations have been increasingly looking for effective ways of assessing employee performance that can promote stakeholders' satisfaction, employee engagement and continuous improvement.