Performance improvement is measuring the output of a particular business process or procedure, then modifying the process or procedure to increase the output, increase 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), which describes various processes and tools for performance management at the individual and organisational levels.
In organisational development, performance improvement is organisational change in which the managers and governing body of an organisation put into place and manage a program which measures the current level of performance of the organisation and 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 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.
In business, human performance in sales, operations and employee engagement is able to be improved through psychologically rewarding experiences "which can trigger a host of intrinsic human emotions and behaviour as identified by Maslow. Including rewards in a performance improvement solution is a proven strategy to engage employees and align them with the company's goals.
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Training and development involve improving the effectiveness of organizations and the individuals and teams within them. Training may be viewed as related to immediate changes in organizational effectiveness via organized instruction, while development is related to the progress of longer-term organizational and employee goals. While training and development technically have differing definitions, the two are oftentimes used interchangeably and/or together.
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