Performance Measures Essay

Defined as “a process by which managers and employees work together to plan, monitor, and review an employee’s work objectives and overall contribution to the organization,” performance management represents an integral aspect of human capital management that has evolved dramatically over the last few decades (HR Resource Center). From the 1970s where annual evaluation was the standard, to results-based evaluations measured by outcome-oriented goals, present day performance management focuses on continuous communication, coaching, and feedback between a supervisor and an employee to accomplish both the strategic objectives of the organization and the career goals of the employee (UC Berkeley Human Resources, 2016). However, an efficacious performance management system requires more than an update of an organization’s performance management process and strategies.

The case of Performance Indicator (PI) provides a nice application of the basic economics underpinning strategy decisions facing firms, as summarized by the Value Creation & Capture Framework. The central question to think about is the following seemingly inconsistent set of facts:

Performance management relates to an organization’s ability to implement a system to evaluate and advance employee performance. Achieving peak performance requires consistency, clear objectives, and constructive employee evaluation. According to Mithas, Ramasubbu, & Sambamurthy (2011), an organization must design the performance management system based on extensive research about the organization’s mission, and then properly communicate the purpose of the system to employees, stakeholders, and decision makers. After the performing the research, the information should be used to establish the appropriate performance management specialized for the organization. In addition, an effective performance management system should align

Henri (2010) identified there was a lack of information present in management accounting literature related to how change in an organization drive change in performance measurement systems. Henri sought to explore

Performance measures of strategic goals are essential information needed in the context of managing financial resources. Measures include market share, cash flow, profitability and market position. Objectives laid down are achieved by improving customer satisfaction, organisational flexibility and productivity. Customer demands need to be managed and satisfied; changes in customer demands need to be identified and met efficiently and productivity must be effective. In order to manage financial resources in an organisation, organisation need to know

As stated by Peter F. Drucker, “Management is about human beings. Its task is to make people capable of joint performance, to make their strengths effective and their weaknesses irrelevant.” Performance management is essential to achieving an organization 's mission statement and business goals, and also in attracting, retaining, and motivating qualified employees. There are many benefits and reasons why an organization should execute a performance management system. Performance appraisals establish the basis for qualifying, recognizing, and rewarding employee contributions. In this paper, I will discuss what performance management is, the problems with the current performance management system at my organization, how other organizations have succeeded in their performance management system and how I would advise management at my current organization to improve our performance management system.

Introduction- To be competitive, organizations must be both strategic and tactical to the nth degree, must be proactive rather than reactive, and must find a way to measure this easily and accurately. One way to accomplish this is through a Balanced Scorecard approach; a tool often viewed as one of the best tools that helps organizations translate strategy into performance. In general the BSA (Balanced Scorecard Approach) allows for a clear strategic and tactical directions for the organization, retains financial measurements in a summation along with their links to performance, and highlights an important and robust measurement system that links and integrates customers, stakeholders, processes, resources, and performance into single measurement strategy.

The report explains the analysis in regards to Business Performance Management, which charts and graphs are created and why, as well as the breakdown of the processes and results obtained from two, yet related, datasets. Additionally, an overview of recommendations will be provided to help devise a long term business decision.

Organizational evaluation or assessment measures, compares, and analyze the coherence between results and specific objectives. Evaluating goals of a global operation with a unified approach is challenging, and demands for identifying significant factors in the performance and growth of the company. These factors are carefully thought and practiced before they become critical contributors in an organizational performance. Contemporary organizations follow diversified growth parameters for success. These have varied degrees of significance in individual market segments. There are different standards and tools to evaluate their

However, this study only focus on operations dimension performance not for the supply chain as a whole. The measurement of performance of SCM entities can be improved by using a more balanced perspective as provided for by the BSC framework (Chia et al., 2009). This study apply balanced score card (BSC) approach on the logistics industry in order to measure supply chain performance but the results may not be representative of the individual clusters. In order to deliver a comprehensive performance measurement framework for SME’s, BSC and SCOR model must be integrated (Thakkar et al., 2009). This study relates the performance measurement with several supply chain cycles such as procurement, manufacturing, replenishment and customer order. However, this study does not cover the decision making levels. Supply chain performance has significant relationship with market orientation such as customer focus, competitor-oriented and cross-functional coordination (Lin et al., 2010) but this study only focus on innovation

In 1992, Kaplan and Norton introduced a revamped management system that focusses on not only the financial measures of a company, but also the operational measures. This system comes after a realisation that no single measure can provide a vivid performance target on the critical areas of a business. The system provides managers the platform to view the business from four vital perspectives; Customer, internal, innovation and learning, and financial perspectives.

This paper is a review of Chapters 10, 11 and 12 in McDavid, Huse, and Hawthorn (2012) second edition, Program Evaluation and Performance Measurement: An Introduction to Practice. Chapter 10 reviews performance measurements systems and how they are used, their effect and accountability. Evaluators and program managers and their connection is reviewed in Chapter 11. Additionally, how this connection is affected by the evaluation purpose and organizational contexts. Chapter 12 deals with the methodology of a good evaluation and points out that there has not been an agreed upon method of choice. This paper contains (1) an overview of the chapters, (2) summarize the key points, (3) summary of the reading, and (4) underscore some implications/applications for policy and practice at a local, state or national context.

The Performance Measurement Questionnaire (PMQ) proposed by Dixon (1991) serves as a straightforward, decision-making tool for managers. It is structured in a form of questionnaire that addresses the suitability of a firm’s performance measures in relative to its improvement aims and objectives. This tool also used to evaluate the consistency between the firm’s strategy, corrective actions and measures. The PMQ is divided into four parts. As the first step, it must gather general data to identify and classify the respondents.

Throughout history, PMS clearly have a considerable contribution to evaluate the success of organisations. According to Neely et al. (2002), performance measurement is "the process of quantifying the efficiency and effectiveness of past actions". Moullin (2003) indicates that "PM is evaluating how well organisations are managed and the value they deliver for customers and other stakeholders". The modern accounting framework can be traced back to the Middle Ages and since that time appraisal of performance has primarily been ground on financial criteria (Bruns, 1998).

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.