Performance Measurement (6) Flashcards
What is a balance scorecard usually used for?
Non-profit organisations and the public sector
What is the aim of a balanced scorecard?
To establish goals for each together with measures which can be used to evaluate whether these goals have been achieved
What are the four different perspectives of a scorecard?
Financial perspective
Internal business perspective
Innovation and learning perspective
Customer perspective
What are traditional measures mainly?
Inward looking and narrow in focus with over emphasis on financial measures and short-term goals
What does the balanced scorecard focus on?
Internal and external factors and links performance measures to key elements of a company’s strategy
What requires a balanced consideration in a scorecard?
Financial and non-financial gaols to prevent improvements being made in area at expense of another
What does a scorecard attempt to identify?
The needs and concerns of customers
What can info used in scorecard be used for?
Info can then be used to identify new products and markets. Comparison with competitors can be made to establish best practice
How can performance management system in a service organisation be analysed?
Through combination of building blocks. Which are dimensions of performance, standards, rewards
What are dimensions of performance?
Profit
Comeptitiveness
Quality
Resource utilisation
Flexibility
Innovation
What are standards of performance?
Ownership
Achievability
Equity
What are rewards of performance?
Clarity
Motivation
Controllability
What is meant by quality in performance?
Being reliability, courtesy, competenence and availability
What is meant by flexibility in performance?
Ability to deliver at right time, response to customer requirements and changes in demand
What is meant by resource utilisation in performance?
Best use of inputs to create outputs. Measured in terms of productivity
What is meant by innovation in performance?
Ability to develop new products or services, move into new markets and continuous improvement
Aspect to setting standards of performance (individuals own)
Individuals need to feel that they own the standards and targets for which they are made responsible
Aspect to setting standards of performance (realistic)
Individuals need to feel that targets or standards are realistic and achievable
Aspect to setting standards of performance (fair and equitable)
Standards and targets should be seen as fair and equitable for all managers in the organiastion
Aspects in the reward system (setting targets)
System of setting targets and rewarding individuals for achieving targets should be clear. Clarity will improve motivation to achieve targets
Aspects in the reward system (performance targets)
Achievement of performance targets should be suitably rewarded
Aspects in the reward system (position to control)
Individuals should be made responsible only for aspects of performance they are in position to control
