Performance Measurements Essay

Management/437 Performance Measurements To ensure that the organizations goals and objectives are achieved, organizations are now using performance measurement tools to achieve them. To improve the process of production, to evaluate and control it is a good idea to have performance measurements in place. Performance measurements also can be useful in making decisions and judgments. An organization will also be able used to compare the performance of departments, teams and, individuals.

Any measurement systems purpose is basically to provide feedback regarding the organizations goals, and it also help the organization attain set goals more effective. The feedback data that the organization receives will let the organizations know where it is, how well it is doing and what path it is taking. Increased motivation is another potential means by which performance measurement can enhance effectiveness. For the motivational benefits of performance measurement to be realized, a performance measurement system must include consequences. [42] A performance measurement system can help to inform managers about the behavior of employees.

Employees might, therefore, work harder to obtain the rewards administered by managers or work harder to avoid the negative consequences of low performance. Modest motivational impacts are reported in surveys of government officials. In U. S. municipalities, the motivational benefits of performance measurement are reported to be substantial by 9. 6% of respondents and moderate by 33. 3% of them. [15] These results are consistent with a survey of U. S. counties in which 31. 5 percent of respondents agree or strongly agree with the statement that performance measurement increased commitment to excellence. 16] The reviewed studies indicate benefits in focus or motivation for between 32 and 68 percent of respondents. These findings suggest other mechanisms, in addition to learning, by which performance measurement could enhance performance (Mausolff, Spence 2008). Some key points to ensure that the organization is developing a more effective measuring performance system are as follows: • A successful leader needs to have a plan for setting up an effective performance measurement system. • Internal and external communication is the key for a successful performance measurement. • Performance measurement results should be clear and precise. Performance measurements should be linked to compensation, rewards, and recognition. • Performance measurements should be shared with employees and the stakeholders. Some organizations have a performance measurement system to reward the employees with monetary rewards or letting them take a day off with pay. The employee receives feedback from his or hers immediate supervisor, this can include of what the employee has achieved and how it was done and what can he or she can do to improve this performance. The most common and simplest form of performance measurement is the dashboard.

The dashboard contains important information such as the organizations targets and performance data. These reports can be printed on spreadsheets; these can be prepared on a monthly or quarterly timeframe. Managers can access and view certain information instead of relying on someone else to hand him or her any report needed. Some of the information that managers can access easily can be customer orders, order fulfillment, performance and, productively of the organization. The manager can make a quick decision in which direction needs to take so that the organization can improve so it can run more effectively.

Early data dashboards were static, providing a picture of data at just one point in time and from one perspective. Today, new technology is making these tools much more robust and interactive. The technology also allows users to upload data sets into spreadsheet formats for further analysis (Carr, 2008). Six- sigma was developed by Motorola in the 1980s; its main objective was to ensure that a process was in place to eliminate defects and inefficiency, in other words, quality control. Many corporations and small business around the world are now using Six-sigma.

The main purpose for six-sigma is to give the customer more reliability, value, and high-performance. Even though it was mainly developed for quality control, it is now being used as a way to improve communication, with customers, employees, and stakeholders. It improves the communication process of relations that also includes the designing of a product. The six-sigma program is a business improvement program that focuses on processes, variation reduction, and delivery of quantitative financial results. Six-sigma operates project by project with rigorous documentation of financial results.

Other goals of the six-sigma program are to increase customer satisfaction and overall quality. Six-sigma projects use the DMAIC methodology. DMAIC stands for five project stages: define, measure, analyze, improve, and control. In the define stage, the right problem is selected. In the measure stage, the cost of the problem is quantified. In the analyze stage, the causes of the problem are found. In the improve stage, the problem is fixed. And in the control stage, measures are put in place so that the problem does not recur (Six-sigma program, 2004).

In private or public organizations project failures can cost millions, some reasons for these failures are that the projects were canceled or the projects were not completed in the timeframe allotted. Other reasons for these failures are, the project was not defined properly, lack of management support, and lack of communication. The most important reason that the project fails is the lack of project measurement. Performance measurement main objective in a project is to identify issues and provide information needed to resolve effective when reasons for the projects failures.

There are a number of principles that guide the development and implementation of an EDA PM System. These are: • It must support the organization’s strategic priorities. • A formal champion for major project measurement must be established to lead the development and implementation of a PM System. • The development, implementation and integration of the PM System require time, effort, and skills/expertise and perhaps most importantly, the active support of senior management and staff. Performance measurement is designed to highlight achievements and reveal exceptions that hinder progress toward the attainment of major project success. • Roles and responsibilities must be established for the planning, implementation and operation of the major project PM System. • The performance measures must be tailored to the specific needs of the project. • There must be a co-operative and shared approach to the development and implementation of the project PM System that specifies agreed to objectives, deliverables, and performance measures.

This approach must also specify the methods to collect, analyze, interpret and report the project performance measurement information. • Performance measurement business processes must be adapted or created for collecting, analyzing, interpreting and reporting the performance measurement information. • The project performance measures must be objective, simple, quantifiable, and outputs/results oriented. They must also include qualitative information (Shayne, 2004). Performance measurements are set for different purposes, to motivate employees, to satisfy the customers, or to make sure the organizations runs smoother.

Performance measurements can be used a tool for motivation, it can motivate an employee to work harder because of the rewards that he or she will receive, and it motivates a customer to buy a product because of the excellent quality of the product. An organization can establish its mission, set certain goals, and determine the outcome of how those results are identified and how they will be achieved, by using a performance measurement. Performance gives the decision makers the tool to attain accountability, not being able to determine performance and progress makes the organizations goals more difficult to attain.

References Carr, N. (2008). The Data Dashboard. American School Board Journal, 195(12), 42. Retrieved from Master FILE Premier database. Mausolff, C. , & Spence, J. (2008). Performance Measurement and Program Effectiveness: A Structural Equation Modeling Approach. International Journal of Public Administration, 31(6), 595-615. doi:10. 1080/01900690701640929. Shayne, B. 2004. Performance-Measurement Retrieved from http://www. performance-measurement. net SIX-SIGMA PROGRAM. (2004). In Encyclopedia of Health Care Management, Sage. Retrieved from http://www. credoreference. com/entry/sageeohcm/six_sigma_program