Performance measurement is the process of collecting, analyzing, and/or reporting information relating to individual, group, organizational, system, or component performance. This can involve studying the process/strategy within the organization, or studying the process/technical parameters/phenomena, to see if the output matches what is intended or should have been achieved.
Video Performance measurement
In education
Performance measurement has been defined by Neely as "the process of measuring the efficiency and effectiveness of past actions", while Moullin defines it as "a process of evaluating how well organizations are managed and the value they provide to customers and other stakeholders". Discussions about the relative merits of this definition appear in some articles in the Performance Management Association's newsletter.
Good performance is a criterion in which an organization determines its ability to win.
Performance measurements estimate the parameters by which programs, investments, and acquisitions achieve targeted results.
All performance measurement processes require the use of statistical modeling to determine outcomes. A full scope copy of organizational performance can not be obtained, since generally some parameters can not be directly measured but must be estimated through indirect observation and as a complete set of records never provide uncompressed judgments for key figures.
Some performance measurement systems are used today, and each has its own support group. For example, the Balanced Scorecard, Performance Prism (Neely, 2002), the action-profit link link (Epstein & Westbrook, 2001) and the Cambridge Performance Measurement Process (Neely, 1996) are designed for business-wide implementation; and the TPM Processing approach (Jones and Schilling, 2000), the 7-step TPM Process (Zigon, 1999), and Measurement Methods Total Measurement (TMDM) (Tarkenton Productivity Group, 2000) are specific to team-based structures. With continued research effort and time test, the best theories that help the organizational structure and implement the performance measurement system should emerge.
Although the Balanced Scorecard has become very popular, there is no single version of the model that has been universally accepted. The diversity and unique requirements of different companies indicate that there is no one-size-fits-all approach that will do the job. Gamble, Strickland and Thompson (2007, p.Ã, 31) lists ten financial goals and nine strategic objectives involved with the balanced scorecard.
Maps Performance measurement
In engineering
Performance measurements are performed in the design, development, operation and maintenance of systems, machinery, devices, structures, materials and processes. In design, performance measurements can be physical properties, parameters, etc., while in maintenance, repair, and operation, as well as engineering reliability, failure, availability, maintenance, and OEE are common measures. In maintenance, EN 15341 lists 71 performance indicators, of which 21 are technical indicators. Under the structure of EN 15341, a review of rail infrastructure indicators is offered by StenstrÃÆ' etm et al.
In nonprofit and volunteer sectors
According to the National Center for Charitable Statistics, there are more than 1.4 million non-profit organizations in the United States alone. Measuring the success of a nonprofit in achieving its mission is a common and sometimes necessary practice to secure funding. It is important to measure the success of a nonprofit organization to improve its performance and ensure accountability. However, there is no standard method used to measure the success of nonprofits because they vary in size, structure, and mission. A survey conducted by the Social Entrepreneurship program at Harvard Business School found that board members of nonprofit organizations often regard performance measurement as one of their three main problems.
History
Performance measurement is not a new concept, but rather an old concept of updated importance today. In 1943, the International City Management Association published an article on measuring the performance of city activities. During Kennedy's reign, the system analysis process was introduced to the Department of Defense which sparked interest in performance measurement in the federal government. Other agencies began experimenting in performance measurements when the Johnson administration introduced what they call the planning-programming-budgeting (PPB) system. Eventually more and more state and local governments are beginning to use performance measures to improve their management and budget. The use of performance measurement became common practice in the 1970s with the introduction of new social programs that need to be assessed. However, interest in performance measurement was reduced in the 1980s, as people did not see the benefits of using performance measurements in making decisions. In the 1990s, performance measurements were re-energized as the demand to hold governments accountable to the public increased. A number of resolutions passed by associations such as the National Academy for Public Administration, urged the government to set goals and measure their performance and in 1993, the Performance and Government Results Act was passed by the federal government which required their agencies to engage in strategic. planning, goal setting, and performance measurement.
Balanced Scorecard
Balanced Scorecard "translates the organization's mission and strategy into a comprehensive set of performance measures that provide a framework for strategic measurement and management systems". Originally made for the private sector to "address the shortcomings in the financial accounting model".
Social investment return (SROI)
While it is difficult to assign financial value to the social benefits of many nonprofit work to be produced, nonprofits feel the need to measure their performance. Social return on investment (SROI) is a form of measurement that nonprofits can use. SROI provides financial value for charitable activities so that nonprofits can measure their social benefits. For example, nonprofit Crises use the SROI method to measure the value of their activities by trying to show how to help access education and training homeless populations have benefits such as creating tax revenues and reducing welfare costs.
Vs. evaluation
Evaluating the program can help figure out what works for the organization and what does not. However, evaluation takes time and is expensive. Performance measurement on the other hand is more time consuming and can provide timely information for everyday decisions. While evaluations and performance measurements are required, they each have their respective advantages and disadvantages. The detrimental aspect of performance measurement is that the validity of the results can be questioned, and it is unclear whether the positive results are caused by a particular program.
See also
- Data collection system
- Library assessment
- List of financial performance measures
- Performance improvements
- Performance metrics
References
Further reading
- Behn, Robert D.; Why measure Performance? Different Purpose Requires Different Size , 2003.
- Gamble, J., Strickland, A., Thompson, A. (2007). Crafting & amp; Implementing Strategy. (15th Ed.) New York, McGraw-Hill
- Simon Briscoe. 2005. Difficulties with the target. OECD Observer, no. 246-247.
- Kaplan, Robert S. and David P. Norton; "Putting Balanced Scorecards to Work", Harvard Business Review , Sep/Oct 1993.
- Hutton, C.R.; Performance Measurement Briefing Paper .
- Ittner, Christopher D. and David F. Larcker, "The Shorter Measurement of Non-Financial Performance", Harvard Business Review, November 2003.
- Kaplan, Robert S. and Norton, David P; "Balanced Scorecard: Measuring Drive's Performance", Harvard Business Review , Jan/Feb 1992.
- Kaplan, Robert S. and Norton, David P; "Using the Balanced Scorecard as a Strategic Management System", Harvard Business Review , Jan/Feb 1996.
- Kirby, Julia, "Toward a High Performance Theory", Harvard Business Review , July/August 2005.
- Mendibil, Kepa and Macbryde Jillian; "Designing an effective team-based performance measurement system: an integrated approach", the Strategic Manufacturing Center, Strathclyde University, James Weir Building, March 2005.
- Meyer, Christopher, "How the Right Actions Helped the Excel Team", Harvard Business Review , May/June 1994.
- National Partnership for Reinventing Government, USA; Balancing Action: Best Practices in Performance Management , August 1999.
- Rohm, Howard; Overview of the Balanced Scorecard , US Foundation for Performance Measurement, June 2000.
- Van de Walle, Steven and Roberts, Alasdair, "Publishing Performance Information: A Illusion of Control?" Performance Information in Public Sector: How It Is Used , Van Dooren, W., Van de Walle, S., eds., Houndmills: Palgrave, pp.Ã, 211-226, 2008.
- Grau, Micah E., 2008. "Using the City Performance Measurement System Model for Assessing the Central Texas Cities System". Applied Research Project. Paper 282. http://ecommons.txstate.edu/arp/282
- Carts, Ed and Neely, Andy; "Managing Performance in a Turbulent Era: Analysis and Insights, Wiley, 2012
Source of the article : Wikipedia
0 Comments