Key Performance Indicators (KPIs) – Meaning and Types

Key Performance Indicators are a type of performance measurement tool. It allows management to measure the performance of a company in a certain area such as profitability. KPIs can help a team to work together to achieve a common set of measurable goals, and provide a very quick way of seeing the actual performance of a goal or strategic objective.

Key Performance Indicators are mostly use to monitor an operation or to measure focusing in the aspects of organizational performance which are most critical for an organization current and future success. Key Performance Indicators (KPIs) are used in order to assess the company’s performance in their business units, division, departments and employees.… Read the rest

Effect of Motivation on Employee Productivity

Employee motivation has always been a central problem for leaders and managers. Unmotivated employees are likely to spend little or no effort in their jobs, avoid the workplace as much as possible, leave the organization if given the opportunity and produce low quality work. On the other hand, employees who feel motivated to work are likely to be persistent, creative and productive, turning out high quality work that they willingly undertake.

Organizational performance at individual, collegial and organization levels are being jeopardized and subjected to various organizational changes. Specifically, as developed organizations became larger, more multifaceted and more challenging, concerns about organizational performance competencies development and how it could likely to impact culture and direction of the organization have been in the forefronts of business dialogues.… Read the rest

Major Criteria to Assess the Performance of Employees

The starting point for the performance appraisal process is identifying specific performance goals. An appraisal system probably cannot effectively serve every desired purpose, so management should select the specific goals it believes to be most important and realistically achievable. For example, some firms may want to stress employee development, whereas other organizations may want to focus on pay adjustments. Too many performance appraisal systems fail because management expects too much from one method and does not determine specifically what it wants the system to accomplish.

The next step in this ongoing cycle continues with establishing performance criteria (standards) and communicating these performance expectations to those concerned.… Read the rest

Uses of Performance Appraisal

Performance Appraisal (PA) can be described as a formal process of assessment and evaluation of the employees on an individual as well as group level. The word “formal” is crucial, as it is important that the managers or supervisors review the worker or individual on a periodic basis. Even though,  performance appraisal is only an element of performance management, it is very crucial for the success of performance management as it directly relates to the strategic plan set by the organisation. It is critical to evaluate team performance in many organisations where teams exist but  performance appraisal in most companies concentrates on individuals.… Read the rest

Overcoming Challenges to Effective Organizational Performance

The main obstacles to effective organizational performance is already covered in this blog and the ways to overcome them are discussed below.

1. Employees Training and Development

The hope is that employees who receive training in line with their individual or organizational goals will become more efficient in what they do. Organizations should look at the positive effects of training on employee performance, and consider employee development as a targeted investment into making the front line worker stronger. More importantly, development plans that include “train-the-trainer” (training that trains employees to become trainers of a skill) can provide exponential benefits to the organization.… Read the rest

Advantages and Limitations of the Balanced Scorecard (BSC)

Before Balanced Scorecard (BSC) emerged, organizations usually use traditional methods of performance evaluation focused mainly on financial measures such as ROCE, sales and profits. Balanced Scorecard translates an organization’s mission and strategy into a comprehensive set of performance measures that provides the framework for a strategic measurement and management system. The scorecard measures organizational performance across four linked perspectives: financial, customer, internal business process, and learning and growth. In recent years, a number of multi-national organizations have introduced BSC as part of their management control systems.

Advantages of the Balanced Scorecard

Balanced Scorecard has been widely used in many  organizations in the past 15 years.

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