Essay on Operational Effectivess

4120 Words17 Pages
Most of the company’s have a performance measurement and management system which deals with enhancing the performance of individuals or operations in a company, may it be a manufacturing or a non- manufacturing company. Performance measurement (PM) is a useful tool that helps the company reach its goals, and goals are straightforwardly described by Goldratt as, “the goal of a firm is to make money’, and without the right performance of individuals and operations, it cannot reach its goals. (TXTBK OPERATIONS MGT FOR COMPETITIVE EDGE). First will define PM, and explain the use of PM in comtemporary business companies later explains how to appropriately conucdt performance measurement as discussed by scholars. Then will talk bout HD…show more content…
Therefore it can be claimed that performance measurement plays a vital role in keeping attention on changing customer requirements and competitor actions. On the other hand Wright & Race (2004) argue that too much measurement and standards are likely to make creativity appear as ridiculous. For example, one should not create many barriers for a creative job which can damage his creative ability leading to poor performance. Therefore the requirements should be appropriate and feasible. Appropriate is referred to the achievement of the measure as organizational desired outcomes (actual against the standard and the measure is believable and preferably quantifiable. Conducting performance measurement requires a clear framework for ongoing guidance and perspective, particularly when measuring the performance of a system as large and complex as an organization. While performing the task of PM, the questions should be asked Where to focus the performance efforts in the organization? How to identify which organizational results to measure? How to know what measures to make to evaluate results? , and What about measures after having made efforts to improve performance?
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