12-03-2011, 03:17 PM
Presented By -
Chiranjivi Poudel
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Relationship between performance, Performance Measurement & Accountability
Performance Measurement System (PMS):
“PMS is the set of metrics used to quantify both the efficiency and effectiveness of actions”. Neely et al.’s (1995, p. 81).
Efficiency is a measure of how economically the organization’s resources are utilized when providing a given level of customer satisfaction,
Effectiveness refers to the extent to which customer requirements are met.
“PMS is the information system which is at the heart of the performance management process and it is of critical importance to the effective and efficient functioning of the performance management system”. Bititci et al. (1997, p.522).
Why Performance Measurement is important?
You get what you measure!
High performance is impossible without measurement!
if you want your organisation or business to fulfil its purpose,
to reach its goals and to be valuable to all its stakeholders,
you cannot manage a system unless you measure it!
you must measure its performance. There are no two ways
about it!
The Performance Prism
(Neely et al., 2002
Stakeholder Satisfaction – who are the key stakeholders and what do they want and need?
Strategies – what strategies do we have to put in place to satisfy the wants and needs of these key stakeholders?
Processes – what critical processes do we require if we are to execute these strategies?
Capabilities – what capabilities do we need to operate and enhance these processes?
Stakeholder Contribution – what contributions do we require from our stakeholders if we are to maintain and develop these capabilities?
1- Clarity of Objectives
Objectives should be:
Precise & Unambiguous
Capable of being met
Measurable
Positive (and not negative)
2- Correct Strategies
Strategy is the principal idea, approach or plan of action selected to accomplish the objectives
Which strategies are successful and which are not? It requires :
A framework to identify, develop and manage the strategies
Strategies are tested, analyzed and negotiated as the data becomes available.
5- Employees’ Participation & Trust several benefits of building trust:
Increases employee trust in management
Improves quality of work
Increases commitment
Improves employee satisfaction
Increases the ability to meet stakeholder expectations
Improves productivity
Increases value