Towards consistent performance management systems
نویسندگان
چکیده
Introduction The success and continuity of an organization depend on its performance, which may be defined as “the way the organization carries its objectives into effect”. This requires that “all noses are pointing in the same direction”, as every person in the organization contributes to the company objectives via his or her activities. A good manager keeps track of the performance of the system he or she is responsible for by means of performance measurement (PM). His/her staff carrying responsibility for certain activities within the system, need PM to see how well they are performing their tasks. This also holds for the employees actually executing the various process steps. So performance indicators (PIs) are important for everyone inside an organization, as they tell what has to be measured and what are the control limits the actual performance should be within. Clearly there should exist relationships between the PIs used by the different functions in an organization and the target values (or ranges of values) set for these indicators. However, when looking at organizations it becomes clear that often (too many) PIs are created on an ad hoc basis where no or hardly any attention is paid to the relations between the PIs. This practice may among others result in sub-optimization. Also in literature not much attention is paid to the relations between PIs, except for some general considerations, (see, e.g., Wisner and Fawcett[1] and Doumeingts et al.[2]). The purpose of this paper is to present a systematic method for designing a consistent performance management system (PMS) to be used in practice where explicitly attention is paid to the relations between PIs. By a consistent performance management system (PMS) we mean a system that covers all aspects of performance that are relevant for the existence of an organization as a whole. Such a system should offer management quickly insight into how well the organization is performing its tasks and to what extent the organizational objectives are realized. The method consists of three main steps:
منابع مشابه
Towards Measuring the Project Management Process During Large Scale Software System Implementation Phase
Project management is an important factor to accomplish the decision to implement large-scale software systems (LSS) in a successful manner. The effective project management comes into play to plan, coordinate and control such a complex project. Project management factor has been argued as one of the important Critical Success Factor (CSF), which need to be measured and monitored carefully duri...
متن کاملAn ex ante control chart for project monitoring using earned duration management observations
In the past few years, there has been an increasing interest in developing project control systems. The primary purpose of such systems is to indicate whether the actual performance is consistent with the baseline and to produce a signal in the case of non-compliance. Recently, researchers have shown an increased interest in monitoring project’s performance indicators, by plotting them on the S...
متن کاملTowards Improving Hospital Managers’ Performance in Iran: History of a Pioneer Program Among EMRO Countries
متن کامل
Designing A Mixed System of Network DEA for Evaluating the Efficiency of Branches of Commercial Banks in Iran
One of the most important applications of data envelopment analysis tech-nique is measuring the efficiency of bank branches. Performance measure-ment in the banking industry is important for several groups, including bank managers, customers, investors, and shareholders. The purpose of this study is to examine and design a mixed structure to measure the efficiency of branches of Iranian banks a...
متن کاملEvolution of Scientific Management Towards PerformanceMeasurement and Managing Systems for SustainablePerformance in Industrial Assets: Philosophical Point of View
Even though remarkable progress has been made over recent years in the design of performance measurement frameworks and systems, many companies are still primarily relying on traditional financial performance measures. This paper presents an overview of modern descendents and historical antecedents of performance measurement and attempts to give philosophical definition, in fact addressed the e...
متن کاملStrategy, Management Accounting Systems, and Performance of Iranian Petrochemical Companies in the Light of Contingency Theory
In the present business atmosphere, an organization should be able to respond to environmental needs occasioned by rapid and dynamic evolution as quickly as possible. It is obvious that such ability is impossible without a proper strategic approach, strategic thinking, and a suitable management accounting system. This study attempts to investigate the relationships between strategy, management ...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
عنوان ژورنال:
دوره شماره
صفحات -
تاریخ انتشار 1996