Performance Management System Flashcards
What are critical success factors?
Limited number of areas in which results will ensure successful competitive performance for the organisation
When changing the performance measurement system what must management be aware of?
Too many changes may lead to indicator overload, confusing employees
If something is included the importance of that item is being highlighted to staff
If a measure is dropped you are telling staff that it is no longer important
What are the advantages of non-financial measures?
Wider view
Easier to calculate
Easy to understand
Not distorted by inflation
Can emphasise broad spectrum of management
Positive motivational implications
What are the disadvantages of non-financial measures?
Can be difficult to calculate
Subjectivity exists in design, interpretation and calculation
Can lead to indicator overload
Costly
Culture clash implication
Constant change requires constant monitoring
