Therefore it can be claimed that performance measurement plays a vital role in keeping attention on changing customer requirements and competitor actions. On the other hand Wright & Race (2004) argue that too much measurement and standards are likely to make creativity appear as ridiculous. For example, one should not create many barriers for a creative job which can damage his creative ability leading to poor performance. Therefore the requirements should be appropriate and feasible. Appropriate is referred to the achievement of the measure as organizational desired outcomes (actual against the standard and the measure is believable and preferably quantifiable.
Conducting performance measurement requires a clear framework for ongoing guidance and perspective, particularly when measuring the performance of a system as large and complex as an organization. While performing the task of PM, the questions should be asked
Where to focus the performance efforts in the organization? How to identify which organizational results to measure? How to know what measures to make to evaluate results? , and What about measures after having made efforts to improve performance? (Free Management Library 2007).
Looking for areas of focus in the organization
These include the mission, process, critical performance subsystem and the individuals (Free Management library 2007). These domains suggest areas in which to focus improvement efforts. More explanation follows.
The mission is the ultimate purpose of the organization which is normally updated during strategic planning. There should be an identification of results by establishing units of performance with the products View More »