Author: Group of Authors
Summary of the Book "Performance Measurement"
Why is organizational performance measurement conducted? In an era of increasing competition and rapid change, organizations must continually strive to enhance their performance: their ability to generate significant business results such as increasing shareholder value, boosting customer loyalty, achieving more responsive and efficient operations, improving productivity, and aligning employees with the organization’s strategic goals. But you can’t manage what you can’t measure. So how do executives determine if the company is creating the right conditions for increasing shareholder value unless they can track changes in critical performance metrics over time?
As a manager, your role in measuring performance within your organization is vital. For example, you might assess your unit's contributions to the company’s profitability or productivity, customer loyalty, innovation, or other key performance indicators identified by executives. Therefore, learn how to select performance metrics for your unit and track changes in these metrics.
The book "Performance Measurement" explains how performance metrics work and how to adopt a systematic approach to these measurements while avoiding common pitfalls.
The book asks, "Do you engage in running, playing basketball, cycling, or participating in any other type of individual or team sports?" If so, you probably keep a record of your sports performance, even if it's a simple one, such as: (I completed the eight-mile loop faster than ever before) or (I scored four more points in the game than in the previous match).
Why do you record your scores in this way? Perhaps, like many people, you are driven by achievement or performance, or you are naturally competitive. You want to know if your performance is improving or declining. You like to compare what you achieve with your best previous performance, and you constantly need information about what you are doing. Similarly, organizations need to track changes in their overall performance, and departments, units, teams, and individuals within them engage in similar scorekeeping. So, let’s take a closer look at this desire that drives us to measure business performance.
The book "Performance Measurement" tells us that organizations measure their performance for many reasons: improvement, planning, forecasting, competitiveness, reward, and regulatory compliance. By tracking performance, a company can quickly identify and resolve problems such as declining customer loyalty, profit stagnation, and loss of key employees. Performance measurement is a tool for verifying progress; planning and forecasting allow an organization to determine if it is achieving its desired goals and if it needs to revise its budget and forecasts. Comparing the company’s performance with its competitors and industry benchmarks helps it identify weaknesses and improve its competitive edge. Knowing how well employees achieve their goals enables managers to distribute fair incentives and rewards based on actual performance. Many companies measure performance to comply with government regulations (such as anti-pollution laws) or international standards (like ISO 9000).
The book adds that many people—inside and outside the company—rely on performance measurement data. For example, executives use these data to review how well the company’s strategy is being implemented and to decide whether corrective actions are needed. Group leaders and unit managers use performance data to evaluate employee performance and productivity and to motivate employees. Shareholders, industry analysts, customers, the media, and government regulatory bodies use these data to make decisions such as whether to invest in the company, buy from it, or determine if it operates efficiently and ethically.
Relationship Between DocSuite HR System and "Performance Measurement"
The DocSuite HR system is used to organize employee data, manage payroll, training, and other administrative functions related to employees. The book "Performance Measurement" is a tool for measuring and evaluating employee performance.
The relationship between the system and the book lies in the fact that the DocSuite HR system can generate the data and information necessary to evaluate employee performance, such as attendance, task performance, and monthly or annual evaluations. These data can then be used in conjunction with the book "Performance Measurement" to analyze each employee’s performance and provide specific and logical assessments.
You can download the book "Performance Measurement" directly from here.