Performance Measures in Operation Management Essay

performance which in turn will ensure competitive advantage for their organization. It can be used to determine things like the mission, vision, goal, values, mission, timeline objectives, roles and responsibilities.

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.

To evaluate the Performance in any organization would simply mean to understand the goals and objectives of the company and how the goals/ objectives are achieved are the means of measurement. Different organization will have different objectives. For some it would mean high revenue, managing resources, customer satisfaction, and strong governance, building

Directors, Managers and even Supervisors take it upon themselves to compare their products, performances or processes externally with their competitors or even internally with similar activities and then this allows identification of weaknesses and inefficiencies.

The fourth key to benchmarking is systematic external benchmarking. Once management has realized the importance of internal business processes and world-best practices, it is their responsibility to combine these two themes. Management must systematically examine its internal practices and performance in comparison to external benchmarks. The last key is benchmarking as a survival technique. It may effectively save a business from declaring bankruptcy. However, benchmarking should be used in organizations regardless of financial or economic status.

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

The information gained from such a comparison allows firms to determine how well they perform in comparison with the “best” and, in turn, develop new and better strategies to work towards making improvements or adopting certain best practices. Benchmarking is usually an ongoing process in which companies continuously seek the improvement of their practices. (Debitoor, 2017)

Porter, M. E. CompetitiveS trategy. (1980): Techniques for Analyzing Industries and Competitors. New York: Free Press.

Performance management is a tool that managers use to ensure that their companies remain at the top of their competitive edge. The Chartered Institute for Personnel Development (CIPD, 2008), defines performance management as a method by which individuals and teams are managed in a way that achieves high performance at an organisational level. The individuals within the organisation share an understanding of the achievement goals of the organisation. In order to achieve this, a general strategy is created, with each individual within the organisation understanding his or her role and requirements within such a strategy

* The individual’s performance and development should be seen as a joint partnership between the line manager and the individual. Development of goals and objectives which are incorporated into individual job descriptions, person specification and work situation’s provide performance level criteria.

They defend their market from competition by benchmarking their value chain costs against the competition.

It is the ability of a company of being fast and quick in deliveries. It’s the time that goes from customer asking for a product or service to the receipt of it.

Speed performance objective- this would be focused on the rates in which Tesco generates its sales and how quickly the business intends to deliver its items to consumers and customers, Speed also could mean the time it takes Tesco to come out with new products and services or how fast the company reacts to out of stock items that are in high demand.

Benchmarking might help in evaluating the standards attained by the competitors, but it does not examine the circumstances or factors (such as optimization strategies used by the competitive hospitals in improving the efficiencies of patient movement) under which the competitors attained those standards. In addition, after achieving desirable outcomes or excelling beyond the competitor’s standards, many organizations develop an audacity which can impair the organization’s future growth (Nayab, 2010). Further, benchmarking can factor into financial matters by identifying the actual discrepancies between the internal and external performances. Also, it can help in facilitating the distribution of resources and justifying the budget ratios within individual units and

I have experience in performance management and understand the performance appraisal or a disciplinary process. It aims to improve organisational, functional, team and individual performances. Effective performance management measures the progress being made towards the achievement of the organisation's business objectives. It does so by planning, establishing, monitoring, reviewing and evaluating organisational, functional, team and individual performance.