Preview

Significance of Information in Business Evaluation and Improvement

Good Essays
Open Document
Open Document
764 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Significance of Information in Business Evaluation and Improvement
Nowadays, information plays significant role in business evaluation and improvement. To make sure that the company is moving toward established goals and all processes are of required quality and meet the overall strategy, performance measurement process is essential tool for any operations.
Traditional financial measurement is not applicable in today’s business environment anymore as it does not provide the company with real understanding of its processes and therefore organizations have to consider other non-financial factors of day-today performance, involving short and long-term approaches to be capable to appraise its performance correctly (Slack and Lewis, 2012).
Performance measurement allows organisation to identify how effective and efficient it is in comparison with previous periods as well as to continuously improve its services or products by setting new performance targets. As stated by Braz, Scavarda and Martins (2011) performance measures are metrics used for evaluation of part or complete process in comparison with set target, which have to be properly identified, implemented and continuously monitored.
According to Carengo et al (2007) cited by Braz,Scavarda and Martins (2011) implementing performance measurement allows companies to stimulate significant changes on managerial level as well as improve companywide learning and understanding of processes through collection, interpretation, analysis and distribution of performance related information.
The essential requirement is that performance targets and measures have to cover the sense and point of processes and performance. Poor designed targets as well as their measures can lead to difficulties in planning and control of operations and demotivate employees. As stated by Radnor and Barnes (2007) performance measurement system have to quantify what has direct influence on process effectiveness and efficiency and use gathered data as the basis for managing performance improvement.
In my

You May Also Find These Documents Helpful

  • Powerful Essays

    Unit 16 P5 M3 D2

    • 2841 Words
    • 9 Pages

    Performance management is essentially about creating a strong communication with the people around you in your working environment. It helps a manager monitor and assess how well their employees are developing and if they are reaching their goals and targets set. Through this process, a business is able to state from the correlation between good performance management and the success of the organization through their objectives.…

    • 2841 Words
    • 9 Pages
    Powerful Essays
  • Powerful Essays

    When looking at performance management it can be defined as (1) ‘a process which contributes to effective management of individuals and teams in order to achieve high levels of organisational performance. As such it establishes shared understanding about what is to be achieved and an approach to leading and developing people which will ensure it is achieved.’ We can see from this definition that managing performance is crucial to the overall performance of the organisation and meeting its goals and objectives. This process must then be strategic but also link other aspects of the organisation such as individuals and teams. As defined above, performance management is ultimately about achieving high levels of organisational performance. As managers we must use performance management as a continuous process that aims to improve & develop the individuals in our team. MITIE uses the below diagram to illustrate that the process is continuous. (2)…

    • 1865 Words
    • 8 Pages
    Powerful Essays
  • Good Essays

    Performance indicators are benchmarks that have been set by the company to measure their performance in relation to their aims. There are four main performance indicators that companies monitor to ensure that customer service is delivered appropriately. These are: customer satisfaction rates, profit and sales of the company, the customer loyalty and the footfall of the company. These indicators can determine how well the customer service is being delivered and can improve upon these.…

    • 5419 Words
    • 22 Pages
    Good Essays
  • Powerful Essays

    Unit 16 P5

    • 1810 Words
    • 8 Pages

    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 involve looking at process/strategies in place, as well as whether outcomes are in line with what was intended or should have been achieved.…

    • 1810 Words
    • 8 Pages
    Powerful Essays
  • Powerful Essays

    Fred Maiorino Case Study

    • 2707 Words
    • 8 Pages

    Hammer, M. (2007, Spring). The 7 deadly sins of performance measurement and how to avoid…

    • 2707 Words
    • 8 Pages
    Powerful Essays
  • Good Essays

    Performance measurement is known as the collecting and analysis of data to determine how an organization will reach its potential (The Joint Commission, 2013). Often this type of analysis is seen in engineering, with the recent push in Via Christi, Lean design and Six Sigma black belts have joined the team in quality. A good example of performance measurement is through The Joint Commission. They have outlined a set of performance development methodology that is considered the "gold standard" in health care today. By meeting these measure hospitals can function at an optimal level regarding quality care.…

    • 887 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Noe, Hollenbeck, Gerhart & Wright (2015) also agree that developing a new performance management system consists of engulfing the organization’s goals and objectives and that the performance measures play a crucial element in determining successful…

    • 950 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    4.1 Performance Indicators are quantifiable measurements, agreed to beforehand, that reflect the critical success factors of an organization. They will differ depending on the organization.…

    • 2415 Words
    • 10 Pages
    Powerful Essays
  • Powerful Essays

    * It enhances the individual and organisational performance. Armstrong and Baron suggest that Performance Management “contributes to the effective management of individuals and teams in order to achieve high levels of organisational performance”. If the individual are performing well and if the organisation meets its objectives, this will benefit the organisation ( in term of income, quality of the products, customer’s satisfaction, motivation, attraction and retention of staff…), the employees (job satisfaction, rewards…) and the government (lower unemployment, decrease debt, more taxes and less benefit)…

    • 2008 Words
    • 9 Pages
    Powerful Essays
  • Powerful Essays

    5-10 Performance Standards

    • 1697 Words
    • 7 Pages

    In order for performance assessment to work data gathering, observation and documentation need to be performed. These sources give good feedback as to whether goals are being met. There are many sources of data that we can use to check up on the performance management system. The different sources are: direct customers, executives, employees, managers, supervisors, and…

    • 1697 Words
    • 7 Pages
    Powerful Essays
  • Good Essays

    Performance management systems can be defined as the continuous process of identifying, measuring and developing the performance of individuals and teams. For employees: It may very well cause a lower self-esteem; employee burnt out and job dissatisfaction, damaged relationships and use of false or misleading information. For managers: it could lead to an increase in turn-over; decreased motivation to perform; unjustified demands on managers' resources and varying and unfair standards and ratings. For an organization: it can be seen as wasted time and money; unclear ratings system; emerging biases and increased risk of litigation.…

    • 572 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    guantanamo bay

    • 541 Words
    • 3 Pages

    Guantanamo Bay is a prison area near Cuba and is controlled by the American Navy. After the September 11, 2001 terrorist attack in the US, the US forces picked up about 600 people from various parts of the world and imprisoned them in the Guantanamo Bay prison on charges of aiding or involvement in this terrorist attack. In most cases, the governments of the countries to which these prisoners belonged were neither informed or was permission taken. It was done in such secrecy that even the families of these people learnt of this incident only through media reports. These prisoners were interrogated and if the US forces could draw connections between them and the terrorist attack, they were kept imprisoned in this high-security prison. There were no trials before any US magistrate, and no one from the media or the UN were permitted to meet them. There were no legal rights given to these prisoners in any country. The UN supported a probe by Amnesty International which discovered serious human rights violation in the Guantanamo Bay prison. The US directives to prisoners and prisons were not followed. The living conditions of prisoners were deplorable. They were not treated as prisoners of war and many prisoners even went on hunger strike demanding better conditions. Prisoners who were found not guilty were not released from Guantanamo Bay were not released. The US received much international criticism due to this and is now gradually phasing out Guantanamo Bay prison.…

    • 541 Words
    • 3 Pages
    Satisfactory Essays
  • Good Essays

    Miss

    • 320 Words
    • 2 Pages

    Measuring performance: performance indicators (achievement against targets); goal theory; SMART (specific, measurable, achievable, realistic, time-bound) targets eg sales targets, growth targets, financial targets, waiting times, pass rates, punctuality, attendance; benchmarking…

    • 320 Words
    • 2 Pages
    Good Essays
  • Good Essays

    Public Services

    • 932 Words
    • 4 Pages

    Kloot & Martin (2000) made an important distinction between measuring performance and managing performance (Verbeeten, 2008, p431). Performance measurement is one aspect of performance management, it is the regular collection and reporting of data to track work produced and results achieved therefore informs performance management (Lichello, p9). Performance managing entails using performance measurement as a management tool to clarify goals, the contribution toward achieving those goals, and understand the benefits received from the investment in each program (hhs.gov). It is also important to understand Performance monitoring. Performance monitoring is concerned with using performance measurement systems as part of a performance management regime (allwords.com) in order to continuously analyse results and to identify weak aspects that need improving.…

    • 932 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    Health Care Pest Analysis

    • 637 Words
    • 3 Pages

    Performance measure is defined as a regular compilation of records to evaluate whether the correct processes are being performed and desired results are being attained, (Performance Management & Measurement, 2016).…

    • 637 Words
    • 3 Pages
    Satisfactory Essays

Related Topics