Importance of performance measurement, Operation Management

Importance of performance measurement 

1. Research reveals that many institutional investors are basing their decisions, in part, on a review of company's non financial performance. According to a report called 'Measures that Matter' from Ernst and Young's centre for business innovation, investors give non financial measures, on average, one third of the weight when making a decision to buy or sell a given stock 

2. Total quality organisations measure more and different processes and outcomes than non-total quality organisations, and the primary requirements are to interrogate measures across different Levels and functions in a company. 

3. Measurement is the beginning of improvement, because if you cannot measure the activity, you cannot improve it. 

4. Measurement helps an organisation direct its scarce resources to the most attractive improvement activities ... Measurement also provides a direct stimulus to action. 

5. Measurement is required to reduce emotionalism and increase constructive problem solving, increase influence, monitor progress and give feedback and reinforce behaviour. 

6. Performance measurement system serves as a primary tool for communicating direction, for establishing accountability, for defining roles, for allocating resources as well as for monitoring performance.

7. Adam et al (1997) have shown that performance improves an individual's performance if there are targets and the performance will maximise if targets are seen as challenging but achievable. Euske et al (1999) state, the impact of performance measurement on organisational behaviour depends on the organisational context of the measurement, the use made of measurements, the degree of agreement between measurements and organisational objectives, and the individual's motivational response to measurement.

Posted Date: 3/15/2013 2:15:19 AM | Location : United States







Related Discussions:- Importance of performance measurement, Assignment Help, Ask Question on Importance of performance measurement, Get Answer, Expert's Help, Importance of performance measurement Discussions

Write discussion on Importance of performance measurement
Your posts are moderated
Related Questions

under which topic in operations management are models found?

Q. State you views about supply chain management? Strategies to attain greater integration of the supply chain through raw material to the eventual final sale and disposal of a

1). Some tasks and the order in which they must be performed according to their assembly requirements are shown in the following table. These are to be combined into workstations t

The I-10 carpet outlet wants to develop a means to forecast its sales. The store manager believes that the stores sales are directly related to the number of new housing starts in

what is the problem that you can understand by reading the above situation? how appropriate might a just in time inventory system be for product such as roller skates

Super TV Channel 6 operates in a major Midwestern city and is on the air 24 hours a day. Labour-management relations there have been relatively good over the years. There are three

Which of the following is not a characteristic that distinguishes services from goods? Service jobs are unskilled A service is intangible Services are perishable Services are heter

In the 19th century hospitals had notorious reputations questionable places to visit, risky places to stay. What advances changed all this? a.development of the germ theory of d

1. What are the implications of not allocating material in a shop order after availability checking? 2. Provide some examples of static and dynamic scheduling problems.