Internal Management: Performance Management Flashcards
What is Performance Management?
How the performance of an organisation is evaluated and managed
What is Performance Measurement?
The extent to which an organisation is achieving its aims by quantifying performance.
What is efficiency?
ratio between inputs & outputs
What is efficacy?
the degree to which the desired outcomes result from the outputs
What are KPIs?
Are indicators evaluating and showing the performance of an organisation and whether the aims are achieved.
How KPIs need to be?
Specific
Measurable
Attainable
Relevant
Time-bound
KPIs
Learn
Based on the future
- how can management be improved
KPIs
Steer & Control
Based on the present
- managing activities
KPIs
Giving account
Based on the past
- explaining performance
5 Challenges of KPIs
- Political
- Vague & Contradictory
- Minimal data collection efforts
- Measuring isn’t enough to evaluate
- Cheating
What is the Performance Paradox?
the achievement of KPIs & organisational performance is incongruent/weak correlation.
Indicators become less sensitive due to:
Positive Learning
the factor becomes obsolete because everyone is good
Indicators become less sensitive due to:
Perverse Learning
manipulated information (only pick up the ones that are measured)
Indicators become less sensitive due to:
Selection
survival of the fittest
Indicators become less sensitive due to:
Suppression
Overrepresentation: shows indicators worse than they are
Underrepresentation: shows indicators better than they are
