Title

Performance Management for Small Businesses

Author

Catherine R. Michels, Concordia University, St. Paul

Date

1999

Document Type

Capstone

Degree Name

Master of Arts

Chairperson (Advisor 1)

Dr. Richard Brynteson

Reader (Advisor 2)

Craig Lien

Reader (Advisor 3)

Tom Buchner

Abstract

Of the 22 million small businesses in the United ·states, more than one-third cease operation annually - most within five years of opening. Many failures are attributed to location and product, but there are other contributing variables. Employers frequently neglect to address the connection between the company's strategic goals and the employees' human goals. Owners rarely communicate the company's strategy when that knowledge would provide employees with concrete reason to be productive. Business success is directly connected to the productivity of its workforce and workforce productivity is directly connected to employee satisfaction.

Performance Management is a process of aligning corporate goals with employees' human goals. It involves goal setting, performance appraisal, and reward systems. This specific concept of performance management takes into consideration the time and resource constraints that often prevent small businesses from aligning corporate goals with employees' human goals, thus supporting organizational success.

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