Performance Measurement Paper
Steven G. Staples Jr.
February 23, 2012
Dr. William Dickie
The topic of contrast and comparison contained within this paper consists of the evaluation of three individual performance measurements that exist in management. The individual performance measurements are broken down in order to better understand the inner workings of such measurements goals. Therefore the end result will be measured by how important performance management actually is.
In the world of business there are many cliché’s about how performance measurements are implemented and what they actually do such as “if your company doesn’t measure results then you can’t tell success from failure.” http://balancedscorecard.org/Home/tabid/36/Default.aspx
The key focus on strategic objectives should always articulate precisely what the organization wants to accomplish which is the key to finding accurate, true, strategic measurements. The strategic performance measures will allow the organization to monitor the implementation and effectiveness of the operational efficiency. The best performance measures will provide a way to monitor and see if that strategy is actually working. Focusing on the importance of the employee’s contribution to the success of the organization is another important measure that can be added along with providing a common language for the communication of everyone.
Performance measurement is so vital in the structure of an organization because it is an ongoing and constant reporting and monitoring of accomplishments. Typically the program is implemented by agency management. The different program activities are measured by this system as well. A program may be considered any project, activity, or function that has a set of objectives. The three types in which will be compared and contrasted begins with the output type of performance measures which indicates a specific workload that is processed...
1. Performance Management and Reward Systems in Context
By the end of this module, you will be able to:
explain the concept of performance management;
distinguish performance management from performance appraisal;
explain the many advantages of and make a business case for implementing a welldesigned
performance management system;
recognise the multiple negative consequences that can arise from the poor design and
implementation of a performance management system, which affect all the parties involved
– employees, supervisors, and the organisation as a whole;
understand the concept of a reward system and its relationship to a performance
distinguish between the various types of employee rewards, including compensation,
benefits and relational returns;
describe the multiple purposes of a performance management system, including strategic,
administrative, information, developmental, organisational maintenance and documentation
describe and explain the key features of an ideal performance management system;
create a presentation including persuasive arguments in support of an organisation
implementing a performance management system, including the purposes that performance
management systems serve and...
Designing, implementing and updating performancemeasurement systems
University of Cambridge, Cambridge, UK University of Northumbria, Newcastle, UK University of Cranfield, Cranfield, UK, and University of Cambridge, Cambridge, UK
Keywords Performancemeasurement, Implementation, Alignment, Strategic management Abstract This paper addresses issues met when designing, implementing, using and continuously updating performancemeasurement systems in manufacturing companies. The paper develops, from theory, a framework for analysing the implementation of a performancemeasurement system and uses this framework to interpret three longitudinal case studies. The paper concludes that specific processes are required to continuously align the performancemeasurement system with strategy. When these processes are combined with a well defined model of strategic success, the measurement system can enhance the strategic management process by challenging the assumptions and the strategy itself.
Mike Bourne, John Mills Mark Wilcox Andy Neely Ken Platts
Introduction There is currently considerable interest in performancemeasurement. Management interest can be gauged from the high levels of attendance at...
...achievements actually come from continuous improvement for the respective performance target. According to Hellqvist, (2011), an effective performance management (PM) required a parent’s strategy objective which can reflect in the performance target through measuring the achievement of each target. Since Huawei is a Chinese global company, to establish a performance management to measure each performance target in different location is a difficult decision and complex process as the expectation for its target should applicable and standardize for local and worldwide. (Evans et al., 2002). In particular, the aspect of performance target included Broad Strategic Measure, Functional Strategic Measure, Composite Performance Measures, Generic Operations Performance Measures and Detail Performance Measures (Slack and Lewis, 2008).
Huawei believe operation performancemeasurement should broader its measurement scope from external to internal, long-term as well as short-term and “soft” as well as “hard” measure (Slack and Lewis, 2008). Implicitly, a more complex aggregation of performance target model is needed to perform a more detail and organized performancemeasurement. Significant effort has been established to develop criterion for each performance...
...PerformanceMeasurement in a Modern Business Environment________________________________________
In the past, performance measures were primarily based on financial measures (Bruns, 1998) where the double entry accounting systems was used to avoid disputes and settle trades between traders (Johnson, 1983). As businesses began to grow, their nature and structure also began to change, reducing the control and the close relationship that existed between the owners and management. Consequently, the measure of return of Investment was developed so that business owners can monitor the performance of management (Johnson, 1983). After this, other financial measures such as the Residual Income and ratio analysis were used. As businesses expand further, there was an increasing observation that the traditional performance measures do not adequately measure the whole performance of an organisation competing in current markets (Johnson and Kaplan, 1987). This brought about the introduction of alternative performance measures such as the Balance scorecard, performance prism, Fitzgerald and Moon building block model, etc. which reflect the changing conditions in the market and considers factors like customer satisfactions, innovation, globalisation, resource utilisation, competition, flexibility and quality of service. Empirical research has shown that managers are not...
Performancemeasurement is essential to improve the performance of the organizations to compete in today’s business environment. In the era of industry way back in the 1960’s, the traditional performancemeasurement system has been designed to report labour productivity, machine and capacity utilization, and standard cost variances. These are cost-efficiency-based measures derived from a strategy to minimize production costs, described as a cost leadership strategy. (usefulness of traditional and new performance measures). At that time, multi-divisional forms became popular and each divisional performance is being measured as it will affect the organizational performance as a whole. (Multi-divisional form). In assessing the success of the division, company normally focus on the costs and revenues under the control of that divisional manager. (Performancemeasurement).
However, in recent years, traditional performancemeasurement system has been criticized for their inadequacy in providing performance indicators that can clearly help a company achieve its ultimate goal. (The Declining Need for Traditional Performance). Therefore, traditional organization performancemeasurement systems are no longer compatible with the new...
University of Phoenix
PerformanceMeasurementsPerformancemeasurement tools have been used by many organizations or companies these days as one of their strategies in achieving success. Specifically, this tool is useful for detailed evaluation of the production process of one company, provide extensive guidance for the decision making process, and assess the performance of the company departments and individual employees.
In general, measurement tools are created to give the company an easier access to a feedback system regarding its consistency in achieving their goals, and to provide them with options on how they can improve their current process. Basically, it gives companies a preview of how they are currently performing and where they might be heading.
Another benefit of having a performance system is being able to better motivate the employees to do better with their jobs. However, such tool also has its consequences and the company should also be ready for it. Managers can easily monitor how their employees are doing by having a performancemeasurement tool. And one way for them to make their work performance consistent is by having a reward system. With this employees will really work harder with the hopes of attaining the reward. There...
Performancemeasurement/incentive system: Canadian REd Cross
(CRCS) is the one of the largest charity organization and 2nd largest brand in the world. Its mission to improve the lives of vulnerable people by mobilizing the power of humanity in Canada and around the world. Its vision is to lead the organization through which people voluntarily demonstrate their caring for others in need.
In this report I will perform a review of the internal performancemeasurement and incentive system of CRCS.
CRCS performancemeasurements are placed to make partnership with the employees and supervisor to determine objectives, review achievements and formulate development plans. Balanced score cards are used that interprets the value, objectives and competencies, which align with the organization’s objectives and performance development of the employees: Appendix 1.
As not-for-profits organization compensation is not based on organization’s profitability, rather based on surplus and government grants. Most of the funds of the charity come from individual and corporate donors and government grant.
CRCS compensation and incentive policies are based in accordance of Board of Governors’ policy. It is based on society’s ability to pay and within the salary range.
Usually, salaries in not-for-profit is lower than for-profit. Most of the employees are happy...
...Table of Contents
Research methodology. 2
Company Background: 4
Literature Review: 5
In recent years, the issues relating performancemeasurement, control and strategic planning and management in organizations has received much attention from different profit oriented and non-profit oriented organizations. Thispaper undertakes an interview with the financial manager of IIUM holding BHD to evaluate the performance management, financial performancemeasurement and the budgetary control of the company. Furthermore, we would recommend improvements to the current policies of the company and its implementations. The main motivation behind this survey is to get to know the real lives’ performance and their measurements. In this paper we would discuss the Strategic Performance Measurement’s policy whether it is a centralized or decentralized, the policies that the company uses to make a helping environment for its employees and their performance evaluation techniques. Moreover, the financial performancemeasurement of the company would be evaluated based on the questions that we ask the representative of the company and we would recommend plans for improvements...