Statistical Methods in Measuring Corporate Performance
The purpose of this paper is to provide an overview of commonly used statistical data in the measurement of corporate performance by examining various models and methods.
Corporate performance can be defined as fundamental measures of organizational aptitude used to assess the “health” of the organization and to provide focused direction to operations while supporting managers. In order to measure the company’s intangible assets such as customer relationships, internal processes, and employee learning and development while aligning the corporation’s overall business strategy, statistical analysis of performance measurement data must be utilized.
The task of evaluating the latest performance measures and aligning business strategy accordingly pose serious challenges to managers who must balance daily business demands with long-term strategic goals. The use of statistics to meet these goals and to design a comprehensive performance analysis is vital.
For example, consider the research around employee held corporations (ESOP) such as Southwest Airlines. An analysis of the performance of such companies finds that that ESOP’s not only increase the organization’s ability to attract and retain talent but also increase sales by 2.3% - 2.4% per year over what would have been expected absent an ESOP1. The study used various statistical methods that will be examined later in this paper in more detail.
Probability in Measuring Performance
As mentioned earlier, the process of performance measurement is often uncertain with many unexpected variants. It is largely dependent, therefore, on a valid probability assessment of uncontrollable events (or factors) and risk assessment of the organization.
Probability is defined as the tool used in performance analysis for anticipating what the distribution of data should look like under a given model. There are some phenomena that may seem random or surprising. However, these events or pieces of data are not chaotic but rather
Corporate performance can be defined as fundamental measures of organizational aptitude used to assess the “health” of the organization and to provide focused direction to operations while supporting managers. In order to measure the company’s intangible assets such as customer relationships, internal processes, and employee learning and development while aligning the corporation’s overall business strategy, statistical analysis of performance measurement data must be utilized.
The task of evaluating the latest performance measures and aligning business strategy accordingly pose serious challenges to managers who must balance daily business demands with long-term strategic goals. The use of statistics to meet these goals and to design a comprehensive performance analysis is vital.
For example, consider the research around employee held corporations (ESOP) such as Southwest Airlines. An analysis of the performance of such companies finds that that ESOP’s not only increase the organization’s ability to attract and retain talent but also increase sales by 2.3% - 2.4% per year over what would have been expected absent an ESOP1. The study used various statistical methods that will be examined later in this paper in more detail.
Probability in Measuring Performance
As mentioned earlier, the process of performance measurement is often uncertain with many unexpected variants. It is largely dependent, therefore, on a valid probability assessment of uncontrollable events (or factors) and risk assessment of the organization.
Probability is defined as the tool used in performance analysis for anticipating what the distribution of data should look like under a given model. There are some phenomena that may seem random or surprising. However, these events or pieces of data are not chaotic but rather