News: Performance Management
'People management and business success linked'
26 February 2008
Effective people management is closely linked to business success, a new report has revealed.
A two-year study produced by the Work Foundation and the Institute for Employment Studies indicated that organisations with a comprehensive approach to people management perform better than those without.
The research tested a framework of people management practices with nearly 3,000 employers to assess their impact on organisational performance and discovered that those with the practise saw higher profits per employee, higher profit margins and higher productivity.
David Lammy, parliamentary under-secretary of state for skills, said: "This report represents an important development in understanding the extent to which good people management lies at the heart of successful organisations."
The findings support research into the relevance of management appraisals in the work place.
People-assessment firm Talent Q, reported recently that poor employee appraisals cost the UK economy more than £2 billion a year in lost productivity and poor customer service, reports the Sunday Times.
The company's director, Alan Bourne, has called for managers to be trained to give appraisals effectively so that staff can receive adequate feedback and support.
"Managers must be trained in people skills," he told the news provider.
