Question

The topic of Performance measure in a decentralized organization

Key on discussion making

write up to 300 words + numeric examples and keep the references. Don't copy and paste from any website , no paraphrasing tools as well.

Answer 1

Performance appraisal and measurement are the important thinks that the success of a company depends on......Long term goal oriented firms require crucial evaluation of the performance because a slight change in its activities result in backlog of its operation.

Performance measurement is the analysis of all monitory and non monitory activities so that the management wants to make decision regarding its future operations........................

Despite the remarkable progress made over recent years in performance measurement, many organizations are still primarily relying on traditional financial performance measures .To achieve sustainable business success in the demanding world marketplace, organizations must use relevant performance measures. World-class manufacturing recognizes the importance of metrics in helping to define the goals and performance expectations for the organization. They adopt or develop appropriate metrics to interpret and describe quantitatively the criteria used to measure the effectiveness of the manufacturing system and its many interrelated components.Performance measurement literally makes all actions quantifiable, where measurement is the process of quantification.By improving the actions, a better performance should result. The central concern of all organizations is that they perform well. For organizations in a competitive market, performing equally or better than the competitors is often crucial.Efficiency and effectiveness therefore are key words in this context. Effectiveness refers to the extent to which customer requirements are met, while efficiency is a measure of how economically the firm’s resources are used when providing a given level of customer satisfaction.There can be internal as well as external reasons for pursuing specific courses of action. Both points can influence each other.

Performance measurement also implies that there could be internal and external drivers of performance. For instance, reaching a higher standard of product-quality might improve the customer satisfaction, but could also lower costs of returned broken products. Performance measurement develops steering opportunities by using the strategy, mission and objectives in order to create performance measures, like key performance indicators.

The implementation of a performance-measurement system gives a start for measuring business. Fernand et al. have tried to implement a derivative of the balanced scorecard at a medium-size enterprise consisting of 250 employees. Their objective was to find out if this type of performance measurement was applicable at small-and medium-sized enterprises. Often, performance measurement was implemented based on the strategic direction of the performance manager of an organization. Fernandes et al. adopted a phased approach that enabled both creative and structured thinking. In total, eight phases were identified(Fernandes, Raja, & Whalley, 2006).1.Project initiation:In this step,a research associate at the organization is recruited.2.Strategy clarification. A SWOT analysis is applied to identify and address the specific issues. Strengths, Weaknesses, Opportunities and Threats are mapped.3.Strategy analysis. In this evaluation stage, a list of strategic objectives is identified, also through the use of brainstorming sessions. 4.KPI analysis:Existing performance measures are reviewed.5.Measurement analysis:A zero-point is defined, as well as measurement frequencies. 6.Strategy initiation:A detailed analysis is conducted and a plan derived for attaining the targets from Phase 5.7.Implementation plan:The new plan is implemented and the K P I s are added into the balanced scorecard. 8.Formal review:An evaluation is carried out to measure the opinion of all stakeholders