Evaluation Of A Performance Metrics

When it comes to key performance indicators, Cabrey & Haughey (2014) note three metrics that are customarily used. Those metrics are customer satisfaction, cost reduction, and sales and/or profits. A fourth metric that is often used is employee morale. To measure the success of its change initiative, the league must measure the satisfaction of its fans, whether or not it is saving money on its legal issues, and whether or not ticket sales are increasing.

* Although your team might have high customer satisfaction or a high stock price, your performance in regards to the overall competition is determined via a multi-dimensional scorecard that takes the following criteria into account:

Chip your overall performance as always is exceptional in all areas, but one. Continue doing your best each and every day as you always do. Over time your handle time will come down as we listen to calls together where you can see what areas you can reduce your calls by a few seconds which will add up to minutes in turn bringing your handle time into goal. I am so very proud of you! The hard work and dedication you put into your work never goes unseen by me, the others supervisor, or Payne.

Nonfinancial measures can also be used to measure performance. “Nonfinancial, or qualitative, factors also play a role in managers’ decisions and, as a result, can be relevant” (Nobles et al., 2014). In fact, just like relevant financial information, relevant qualitative information provides the same traits (Nobles et al., 2014). Here are a few suggestions for nonfinancial performance measures that the company should take on. Peyton Approved should include customer and employee satisfaction, employee evaluations, provide training for all new and old workers, look at inefficiencies, indefinite assets, balanced scorecards, and even incorporate a reward plan. Incorporating any of these suggestions though will include pros and cons.

Henri, Jean-Francois. (2010). The Periodic Review of Performance Indicators: An Empirical Investigation of the Dynamism of Performance Measurement Systems. European Accounting Review, 19(1), 73-96. Retrieved from https://ehis-ebscohost-com.csuglobal.idm.oclc.org/ehost/pdfviewer/pdfviewer?sid=7872c1c7-369c-4f36-9a1c-81cea4558aa7%40sessionmgr11&vid=8&hid=1

It is important to view measurements as a way of improvement. Without knowing areas of weakness how can we better our position? The author notes the importance of transformational measurements as making a difference, (Spitzer, 2007). As the organization improves upon their progress, performance measurements are an effective method of capturing progress, when performance improves so does the environment, (Spitzer, 2007). People feel good when they see positive results, (Spitzer, 2007). Measurements are very effective for establishing a steady rate of progression in reaching individual and organizational goals, (Spitzer, 2007). Measurement is life; it is something that occurs in just about everything we do, (Spitzer, 2007). Measurement is more than just numbers it also pertains to how we feel, how we interact socially and our overall health. Organizations need measurement to remain competitive, they measure productivity and marketing skills to improve their position within society, (Spitzer, 2007). In order for management to be effective, their method of measurement must be in line with the objective. The author explains that rewards are great for continued progress and motivation, but when not measured effectively it can be very disastrous, (Spitzer, 2007). Employees are rewarded for the wrong thing, which in turn sends the wrong message, (Spitzer, 2007). An

Performance evaluations, when implemented properly, act as a tool for improving employee productivity, team performance and individual development. They can serve to raise self-esteem, increase motivation, strengthen relationships and foster ongoing communication and commitment (Simpson, 2001). I feel that these reviews play a critical role in the workplace and should remain a part of standard operating procedures, however many are beginning to disagree.

When I was told to watch a performance to write about, I had no idea where to go with watching something. I was stuck. But then I was thinking about it and thought, wait, what if I watch a performance art piece. It literally has performance in the name. This will work perfectly. I looked up some performance art beforehand, and to be honest, I wasn’t impressed with it and thought it was rather peculiar and a little inappropriate. With dabbling upon what I had looked up, I came across Marina Abramović. She caught my eye because of her way of talking. It is so unique and captivating that I couldn’t choose anyone else to watch and write about. If only there was a way to write this paper with the accent Marina has.

Organizations strive to stand out from competitors. For this reason, management teams utilize varying assessment tools to evaluate the various departments, employees, as well as the overall effectiveness of the organization. Assessing the effectiveness of the organization is crucial as the result is useful for modification and improvement of policies and procedures implemented. In addition, the findings can be used in the creation of new innovative procedures, and future strategic planning to achieve the goals and vision of the organization. Kaufman, Oakley-Browne, Watkins, and Leigh (2003) have suggested that the key to obtaining high payoff results for all stakeholders is to begin organizational thinking, planning, and doing with a rigorous assessment of gaps in results based first on value added for external clients and society (p. 12).

My research the week focuses on the importance of measurement and the different factors that play a significant role in implementing successful outcomes. The importance of identifying contributing factors reestablishes the effectiveness of measurement. Measurement in its self can only be as effective as the data collected, (Spitzer, 2007). Unfortunately, data is not always captured accurately. This is caused by not identifying intangibles that are significant to the final outcomes, (Spitzer, 2007). Intangibles are usually not integrated in the calculation, therefore skewing the accuracy of measurement. Intangibles play a significant role in capturing deviations in the measurement due to uncontrollable aspects of the business, (Spitzer,

From the beginning, it is important to understand why measuring an organization’s performance is both necessary and vital. An organization operating without a performance measurement system is like an airplane flying without a compass, a Formula One race car driver guiding his car blindfolded, or a CEO operating without a strategic plan. The purpose of measuring performance is not only to know how a business is performing but also to enable it to perform better. The ultimate aim of implementing a performance measurement system is to improve the

Metrics are measuring systems that give the quantity of a trend, dynamic or characteristic. Practitioners to explain share findings, and the securities of a market use the measurements. It involves measuring the new opportunities and the investments needed to realize them. Marketers quantify the value of products, customers, and distribution channels all under various pricing and promotional scenarios. Measurements and metrics are used to justify budgets based on returns and to drive organizational growth and innovation. Most commonly used metrics involve numerical counting and reporting (Romaniuk et.al. 78). For instance, tracking downloads, website visitors, number of people attending relevant events, and the types of activities relating to metrics. Marketing metrics focuses on measuring the aggregated effectiveness and efficiency of marketing organization. Specifically, metrics include marketing’s impact on share preference, rate of customer acquisitions, average order value, rate of new product and service adoptions, customer buying frequency share and volume of business, customer engagement, rate of growth compared to competition and market and many others.

The purpose of performance management is to get the most out of an employee, so they can help improve the company’s overall success. Performance management gives feedback that can be used for all HRM’s roles. The HRM’s role in the performance management process is to handle promotions, lay offs, trainings, and how much each person should be paid (Snell, Morris, & Bohlander, 2016). They are also responsible to incorporate pay for performance incentives. The HRM’s use a performance evaluation that measures each employee’s roles in their specific job requirements. This evaluation can be used for administrative purposes that gives input and results for all HRM’s activities. The performance management system also documents HRM’s actions if there is ever a legal problem. They need to set realistic goals for their employees and then evaluate them on the progress of these goals. The developmental purpose of having this type of evaluation allows HRM to hire the correct employees and make sure they are put into the best role that will further their career, as well as the company. If HRM can decide where an employee is best fit in the company, evaluate their progress, and train them where needed, the process will improve employee’s performance. This will lead to company success. In order to ensure the process aligns with the organization’s strategic plan, there needs to be a well-defined job description, communication, and well set goals in order to reach that success.

Management accounting researchers (Otley, 1999; Norreklit, 2000) have criticized depending exclusively on financial measures. As referred by Cumby and Conrod (2001), sustainable shareholder value and competitiveness advantages are actually driven by non-financial factors such as employee satisfaction, customer loyalty, internal processes and innovation. As a result, companies started to include non-financial measurements within their PAMs to gain better knowledge about the overall company situation (Ittner and Larcker, 2001; Speckbacher et al, 2003).

Running head: A PERFORMANCE MANAGEMENT SYSTEM 1 A Performance Management System : A Closer Look at Current Models and the Elements of a Performance Management System C urrent P erformance M odels In this section, t hree current models of performance management are summarized in different companies and the results from each of these models demonstrates the relationship between a performance management model and busine ss longevity.