Impact of Interpersonal Skills and Capabilities of Leadership on Knowledge Based Organizations

Knowledge is considered as one of the most important and competitive resource for sustenance of the organisation (Zack, 1999). It can be compared to the strategic resource that can be used and applied in various frames of the organisation. Experienced managers in the organisations believe that company can receive strategic advantage through knowledge and not the strategies or actions implemented by competitors. Knowledge can be regarded as a strong approach that opens numerous ways of success. It is that weapon that help organisation to evaluate solutions in financial and other professional difficulties.

The Performance Measurement is a way to either measure or give a understandable value to what has been done compared to what was supposed to be done. It applies to all aspects in the working environment, such as procedures, critical activities and processes. In other words, first you set pre-defined goals and give away tasks and responsibilities to other workers, then at the deadline you can compare the achieved results to what the original goal was at the beginning. It is also useful to evaluate not only the final result, but even all the actions taken to get that particular results and the way the actions have been taken as well.

Measuring performance means when a business will measure the quality of the activities that are passing and the quality of the services provided to the customers by employees. It involves creating a simple, but effective, system for determining whether organizations meet objectives. It’s also a process of collecting and reporting information regarding the performance of an individual, group or organizations. It can

Performance measurement enables quality improvement through the measurement of performance based upon quality indicators. Therefore, performance measurements can lead to quality monitoring and ultimately quality improvements and the two are dependent upon each other.  External indicators

In this case, performance measurement is an important element. Performance metrics should be constructed to encourage performance improvement, effectiveness, efficiency, and appropriate levels of internal controls. They should also incorporate cost/risk/benefit analysis, where appropriate. The SMART concept is frequently used to provide a quick reference to determine the quality of a particular performance metric:

The performance measurement is a process that is use to collect, analyze and report information in regards to individuals as well as the organization performance. Performance measurement is also the strategy that is put into place to track how well the company is doing with the strategies that was put into place. Chip Conley took a different approach in measuring the aspect of the performance management system. He started looking at how he could address the higher needs of the employees and the customers. So he came up with ways he could evaluate the employees and customer. One of the ways was getting feedback from the employees in regard to the company mission and how they can be an influence to the it and do they feel that they have an impact

Performance metric to measure the company’s performance, growth objective, and strategic goalsi: «Strategic performance measures monitor the implementation and effectiveness of an organization 's strategies, determine the gap between actual and targeted performance and determine

It is important to develop these skills as conflicts are certain to occur in the work place, due to differences in cultural, personalities,

Performance management has been defined as a continuous process of identifying, measuring, and developing the performance of individuals and teams and aligning performance with the strategic goals of the organisation (Aguinis, 2009). Organisations can either use strategic or operational performance management. Most organisational performance management systems are strategic in nature. They are aligned to the business strategy and support the achievement of its strategic goals (Armstrong, 2015). Armstrong (2015) suggests that a strategic approach to performance management takes a broad and long-term view of where the business is going and manages performance in ways which ensure a strategic thrust is maintained. An example of a strategic performance management system is the Balanced Scorecard. A Balanced Scorecard is a strategic planning system that is used to align an organisation’s business activities to its vision and strategy (Roussel, 2013). Once the strategies are aligned they are organised and measured using the four measures of the Balanced Scorecard. These four measures are the customer measure which measures customer satisfaction, the financial measure which measures financial requirements and performance, the internal business process measure which measures critical-to-customer process requirements and measures, and the knowledge, education and growth measure which focuses on how employees are educated, how knowledge is gained and captures and how it is used to

Possibility of managing the knowledge in proper framework is becoming more or more important in modern economy. Knowledge creation and exploration in modern organizations become a key source in accomplishing and sustaining competitive significance. In fact, the level of organizational knowledge how effectively impact on firm uses. This means with the help of this how fast firm gain the knowledge, and create sustainable competitive advantage. In this era knowledge of modern organization is the one, which learns and memorizes the skills that acts on the basis of the available information in the best possible way. Knowledge management represents adoption of core of knowledge in order to achieve organization’s business goals. We can say, knowledge management is a systematic effort to enable information and knowledge to grow, flow in proper way and create and has a responsibility to ensure that person have correct knowledge at the correct place at the correct

How to create and measure organizational performance measurement system has been a persistent source of debate. Traditionally, organizational performance management system included measuring financial ratios, such as return on investments, cash flows, and cost of sales.

All through history, many organisations have used performance tools to assess the success of the organisation. Assessment of performance has predominantly been based on financial criteria since the Middle Ages. (Burns, 1998). Performance measurement tools are used to monitor what management is doing with factors such as share price, return on investment, profit percentage, sales volume etc.

As mentioned earlier about the importance of the set of organizations i.e SME’s and MNC’s. the focus or the objective of this paper is to analyze the possible outcomes like competitive advantage for a firm, profits and sustainable growth after the implementation of knowledge management practices, which is the leading factor for competitive advantage, profits and sustainable growth in

Performance measuring is vital part which assessing value of employee and management. Performance can be measure through employee’s overall impact cost efficiency and effectives. (Anon., 2017)

Managers should ensure that selected performance measurement system fits the unique requirements and business strategy of the firm. In general, primary economic activity of the company and its performance focus should dictate the selection of performance measurement model.