Final answer:
A performance improvement practitioner needs to develop broad company knowledge to fully understand an organization's system. This involves grasping social systems, carrying out research, and analyzing statistical data, which benefits the practitioner and the organization.
Step-by-step explanation:
To gain a sense of the organization's entire system, the performance improvement practitioner needs to develop broad company knowledge, which is typically done by business analysts. This kind of knowledge encompasses an understanding of social systems and large bureaucracies, the ability to devise and carry out research projects to assess whether a program or policy is working, and the ability to collect, read, and analyze statistical information from polls or surveys. Developing these skills is crucial not only for personal career growth but also for bringing value to the organization. Particular attention should be paid to gathering information from various sources, including customers and other stakeholders, finding expert opinions, and conducting a thorough root-cause analysis to identify fundamental problems. This holistic view is also beneficial in the realm of industrial and organizational psychology, which involves designing fair and effective performance-appraisal systems that contribute to employee and organizational success.