Demand Side Management

Demand side management

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Demand side management it a management way used to ensure steadiness on the electricity grid, electricity supply and demand ought to remain in equilibrium in real time. Habitually utilities have called upon selecting power plants to boost power generation to meet increasing demand. Demand side management, which comprises of demand response and energy efficiency, works from the other side of the equation that is as a substitute of adding more generation to the system it pays energy users to reduce energy use. Utilities pay for demand side management capability because it is naturally cheaper and easier to obtain than habitual generation (Los Alamos National Laboratory., United States, United States, Luo, Wasserman, Bassetti, & Lubeck, 2012).

Performance Management is an organizational system which links the goals and strategies of an organization to team and individual performance to be able to ensure an increase in the effectiveness of the organization and therefore being profitable. The following are the key processes of performance management that demand side management should provide in its system to ensure that it successfully links its key success factors; planning, this is the first step where all staff members meet and decide how thing are to move forward by creating sensible objectives for the organization, which resources should be dedicated to the objectives and which resources should be abandoned.

The second stage is the execution stage; here the plan is put to action adhering to objectives and goals. Monitoring the progress of the organization is important; it enables the management to know if the plan is being followed in the performance of the organization or it is not and if the processes are working efficiently or not. Analyzing the information gathered when monitoring is the other step, it helps to turn the data into information which allows staff members to know what is done well and what is not. The final step is reviewing; this enables an organization to consider how the performance of the organization has met the goals and objectives and enables them to know which process to correct and which to motivate.

This process help demand side management to successfully links its key success factors because in that the process helps it to fulfill an organizations key success factors which include; purpose which is preserving energy, preserve the physical resources and to satisfy its customers and to have a good relationship with them through reviewing the services if they are good or bad in order to know what to continue doing and what to improve in order to satisfy the customers and have a good relationship with them (Douma & Schreuder,2008).

The key drivers of demand side management according to the 2011 annual report of demand side management include; climatic changes and the unfavorable effects of over-reliance on fossil fuels which increasingly continue to be the most significant trends driving the materials industry, global shifts which can be referred to as the increase of urbanization and increasing populations in the rising economies, which create high demands for energy and resource efficient products. Lastly the wealth and health of the human being who are the customers, this includes a need of monitoring and minimizing unsafe materials in the products, which affect human health and the surroundings. The central manner in which DSM management has aligned its business strategies to performance measurement is by ensuring that the customers are safe and satisfied with their work or the processes. When customers are satisfied it proves that the performance of an organization is effective because they aim at satisfying the customer.

Their strategies are aimed at ensuring customers save on cost from the saving they make when they use for instance electricity well and ensure that the products they offer the customers are environmental friendly to help make them to be healthy and to live in a good environment. It also educates the customers on the effects of using products that are hazardous and environmental unfriendly and the importance of saving energy. Demand side management monitor the way the strategies are carried out and look for ways to improve the strategies and to embrace the strategies which work effectively this shows that DSM has aligned its business strategies to performance measurement (Li & Shchukin, 2012)..