Measurement Systems to Measure Performance Management

Performance management is a tool used to maximize performance within an organization. Performance management is a set of targets used to increase performance within the company.

Benefits

Performance management helps a company strengthen decision making at all levels, enhance program outcomes, increase ability to meet accountability requirements and improve communication of outcomes to key audiences. Performance is measured to provide feedback that helps companies find ways to enable better performance.

Fundamentals

Performance measurements are typically based on five fundamental areas of a business -- money, productivity, quality, innovation and human resources. When a measurement system is determined, it should be simple, have a clear purpose, provide fast feedback and constantly be reviewed to improve it.

Measurements

A balanced scorecard approach is one performance measurement type that works by asking questions such as how customers view the business and how the business looks to stockholders. The balanced scorecard helps companies develop a set of measures for a business to use to increase performance. Economic value added is a tool used for measuring the efficiency of the way a company uses its resources. The 360-degree assessment is another common management measuring tool that uses feedback from staff and customers to develop ways to increase performance.

References

• Reference for Business: Performance Measurement
• ICF International: Performance Measurement and Management
• 1000 Ventures: Performance Measurement System