Introduction
In any company, the goal for progress and rapid acquisition of income and
profit is the central task of any management, especially those who are assigned
in the senior management level. The constant research and further study about
the organizational development of any company is imperative in order to stay
competitive and live longer in the business world. In this case, versatility of
managerial skills and savvy attitude towards critical analysis on management
strategies and approaches are needed. Significant to the growth of any
corporation is the advancement of adopting new means of giving effective
customer service assistance in order to remain competitive and at the same time
help robust the company’s profit and income, the use of new technology as the
means of generating highly effective and proficient services to costumers
imperatively employed.
All companies strive to have this
attitude and behavior. The utility of human power and knowledge manufacture
great results in any organizational structures. The presence of highly
competitive managers, researchers, economic analysts, experts in human resource
management are formed collectively as archetypes of companies serving as
troubleshooters, innovators, constructivist managers and organizational experts.
With all of these high caliber human
capabilities, companies lived longer and advertently progressed and developed
competitively.
The historical antecedents as well as the
precedents allow us to conjure our strengths to follow the significant footsteps
of our forefathers in their struggle of instituting a civilization which
represent their investment for labor and work. The transmission of knowledge and
historical facts lead us to recognize the value of our ancestors’ struggle to
establish a world that is conducive for living. The unending struggle to fight
for the right and against oppression, abuse, and slavery are embossed in the map
of history, chronologically designed and evaluated rigorously. In this line of
thought, we are brought, with enough historical evidences that the omnipresence
of labor and work is indeed born along the creation of life.
Management in organization
In the realm of human resource management with other influential
districts within an organization emphasized the vital role of individuals as the
center of all the processes. One great consideration in defining and formulating
effective organizational structure and management strategies is the role of
individuals within its sphere. We cannot deny the fact that technology brought
magnificent output in any organizational production but while technology can be
an aid, the centrality of individuals or people has to be fully recognized and
reinforced continuously. Such centrality of individuals merit incentives of
being agent of knowledge transfer and knowledge source.
Moreover, our identification of
individuals as to its role in the growth and success of an organization is
considered essential, more so in various domains of worldly interactions.
Organizational behavior
In the current findings based on scholarly research, organizational
behavior constantly changing due to various factors and variables involve.
According to Denise Rousseau (1997), “the central problems in organizational
behavior are influenced by changes in organization themselves”. Since,
organization is changing it logically follows the changes in organizational
behavior. This concept may cover a wide range of subjects, methods, approaches
and perspectives. This may ranges from the use of management theories,
organizational culture, individuality, decision-making, politics, power,
leadership, conflict, and management change. This wide array of subject matters
capsulated in a single term “organizational behavior” is but essential to the
growth of an established and global corporation. The stability and status of
organizational behavior within an organization underlines the process on how to
meet the expected goal and vision of the organization.
The conceptual analysis of organizational behavior is significant in
understanding the scope of performance measurement employed within an
organization to assess and evaluate the efficacy and efficiency of work. It is
within this area wherein management employs proper and effective strategy to
create conducive workplace.
Furthermore, management processes is
infertile without the existence of any structured organization. Only when an
established organization ventures itself to financial or non-financial scheme
can management processes fertilized its purpose. The fact is that management
exists there are organizations present.
Identifying the range of Performance Measures
for Management
In every organization the need of various tools and strategic methods are
important in assessing and determining its status whether it still maintains a
competitive ambiance, financial value, profit operations and quality production.
Hence, one important management strategy employed to assess and evaluate the
efficacy and efficiency of various districts of the organization is known as
performance measurement. Organization sees the relevance and value of such
strategy. In order to identify problems, issues, and concerns of all members,
the use of metrics are important.
We defined performance measurement
as a management tool used to maximize program success of an organization. The
continuous updating and evaluating of organization’s performance is significant
in the process of growth and development.
Performance metrics are crucial to “understand
the complex relationships of cause and effect, delay, feedback and so on (Issue
Explorer, retrieved July 9, 2008, orsoc.org.uk)” within an organization. The
role of managers and higher authorities are key performance drivers in which
responsible to devised strategy in which performance measurement can be
successfully launched.
However, performance drivers are not
only to responsible in devising strategy and instruments to measure the
performance level of various entities and members of an organization, but to be
critical considering that it might be detrimental to the organization’s
objectives and goals. Hence, proper formulation and implementation of such
metric is imperative. Drivers should identify particular subjects to be
evaluated and measured in order to avoid futility of the strategic process.
Performance measures are considered as part and parcel of organization’s
strategy design. Moreover, Frigo (2002) emphasized the importance of performance
measures which must be “driven by a process encompassing the ongoing
reevaluation and redesign of business strategy.”
Since the inevitability of changes
occurred within organization due to outside forces like technological and
scientific innovations, the entire value chain of an organization as well as its
interrelationships of activities within that value of chain are affected by such
forces of change. Thus, this also affects performance measures which are to be
employed.
Frigo (2002), moreover, underlined
the need of synchronization and alignment of such performance measurement with
that of defined organization’s strategic activities, more so, the usefulness of
performance measures in helping synchronize strategic activities. He argued:
“all strategic activities must be highly aligned and synchronized to create the
right kind of offerings.” Hence, he urged that organization’s management to be
“vigilant in aligning performance measures with the strategy of the
organization.”
In such case, the articulated ideas
raised by Frigo give us notable insights that in planning to employ performance
measurement in frequent basis, needs a considerable system. In order that such
performance measures will not be futile and not being detrimental in other
operations, organization should determine the functions that need to be measured
and identify the indicators that best reflect performance. With this kind of
consideration, organization may be able to articulate and achieve its desired
objectives and goals.
Moreover, performance drivers must
inculcate in their minds against the rococo of performance measurement that what
should be the primal thought they must hold is that performance measurement
should be a means to the end of effective management.
The overview just being presented
would lead us to conceptualize and locate the end point of performance measures’
range. Undoubtedly, such process and strategic tool covers the whole of
organizational management process. The interconnectedness of various
organizational districts assumes the range of performance measures. Such
large-scale coverage of the process clearly manifests in its many approaches,
analysis, and methods which can be employed as part of measuring organization’s
performance. There are generic approaches which organizations can invoke like
Systems Thinking approaches which seek to capture the conceptual models of
managers in order to understand the underlying cause and effect relationships
between factors. Multiple Criteria Decision Analysis which provides an outline
for unequivocal thought of multiple factors compelling people to consider
exchange or trade-off. Data Envelopment Analysis is a technique for taking
numerous metrics performance into a single outline for identifying best
practice, developing a chart of under performance and helping to set achievable
stretch targets.
Hence, these evidences suffice our
attempt to identify and locate the range of performance measures.
Performance Metrics in Manufacturing Industries
In the recent landscape on economic
and business status of India it configures a systematic, effective, and
organized strategic planning which eventually boosted an economic and business
success specifically on IT, hardware and software industries and other major
technological businesses.
Recently, researchers dubbed India
as business process outsourcing hub in Asia. Added to such phenomenon is the
seemingly “farfetched” but not really is, Information Technology industry, in
which constructs a magnetic field which attracts investments from foreign
investors and countries abroad. The IT industry in India brought bonds of profit
and income to the government and business units. However, such phenomenon and
rapidity of economic boom must be indebted on its own way of carrying strategic
and positive developing of manpower force.
The example was set to concretize
our perception and understanding of manufacturing industries in which human
labor and manpower management are vital elements. Like in India, most of its
industries are inclined towards manufacturing. Most probably, the boom of its
business industry is not only a credit to proper management, good regulations
and government programs but also of each organization’s awareness and critical
behavior towards measuring performances of its members.
In Alastair Shaw’s article A
Guide to Performance Measurement and Non-Financial Indicators, identified
performance indicators in which financial and non-financial organizations can
utilize for performance measurement. He identified six performance indicators
wherein performance drivers can dwell into, first, competitive advantage which
can be measured through market sales growth, share and position. Second is
financial performance which is through profitability, capital structure, and
liquidity. Third, quality of service refers to both employees’ and customers’
reliability, responsiveness, appearance, communication, comfort, competence,
access, availability and security. Fourth, flexibility pertains to volume of
flexibility, specification and speed of delivery. Fifth, resource utilization
can be measured through productivity and efficiency of workers and lastly,
innovation which refers to performance of the innovation process and of
individual innovations.
Moreover there is another model in
which manufacturing networks or industries can use as a framework for
performance measurement. This model is called the Balanced Scorecard in which it
helps to determine and particularly identified factors to measure. The
particularities in which can be used in performance metrics are deduced in the
following categories: customers’ satisfaction and dissatisfaction, retention and
behavior, these can be indicators in which can be measured, stakeholders’
satisfaction, marketing strategies the potential and growth rate, operations,
organizational capabilities and stakeholders’ contributions.
Furthermore, Hougas and Bartelstein
(2003) provide five important issues in which can be considered in planning for
measurement namely: involve key personnel, monitor measurements closely, examine
key manufacturing areas, analyze measurement data with employees, and review
goals and follow through with changes.
Hence, clearly, manufacturing
industries like India obviously use these strategies in further develop its
manufacturing industries.
Performance Metrics in Non-Manufacturing
Industries
Performance metrics generally applied to any organization regardless of
its kind, whether it is a manufacturing or non-manufacturing industries,
performance measures can be applied. However, there are cases in which the
general application of measures can be deduced and modified depending on the
need and the structure of the organizations. Most often, this process happens in
two different business entities like manufacturing and non-manufacturing
entities.
In non-manufacturing industries one
example is the government agency. Performance measurements in government
agencies are developed as part of the strategic planning process and should flow
from the agency’s mission and objectives, strategies, and goals with an emphasis
on serving the agency’s customers. Again, performance metrics in government
agencies serve as a basis for planning future agency actions. Moreover, metrics
inform decision-makers of internal process and help establish cause and effect
relationships between performance, agency actions, and funding.
Moreover, performance metrics are
used to operate strategic plan through action plan, operational plans,
implementation plans and business plans. It helps to frequently assess agency
progress in achieving strategic and operational goals and objectives through
review of actual performance and expenditures. It strengthens and develops
agency rules policies and procedures.
Conclusion
The study pertains to identifying the range of performance measures for
management in both manufacturing and non-manufacturing industries. In the
previous discussions I outlined basic assumptions about performance measurement
in order to strike a clear argumentation. Moreover, the analysis of the subject
matter is located in my attempt to identify and locate the range of performance
measurement used by any organization. Such strategic practice provides any
organization frameworks to identify factors which need to be enhances and to
further develop especially on the level of efficacy and efficiency of different
districts comprises an organization.
Furthermore, performance
measurements or metrics are important not only to enhance the level of efficacy
and efficiency of workers but to further develop the competency level of the
organization. Only when an organization which successfully formulate and apply
proper performance measurements can achieves its desire goals and objectives. As
authors of business management would put it, management vigilance is needed
because careful implementation and application of any procedure on measuring
performance can be on one way or the other detrimental to the business strategy
of the organization. Thus, any metrics used should compliment to the business
strategy, more so, enhance and further strengthen such organizational strategy.
References
‘Performance Measurement’, Business Knowledge Source.com
‘Performance Measurement’, Issue Explorer. www.orsoc.org.uk
Frigo, M
2002. ‘Strategy-focused Performance Measures
(strategic management).’ www.allbusiness.com
Hougas, J & Bartelstein, B
2003. ‘Implementing Manufacturing Performance
Measurements’, Tooling and Manufacturing Association
ICF International
n.d. ‘Performance Measurement and Management:
Achieving Mission-Relevant Results Through Performance Measurement’
Keel, J, O’Brian J & Morrisey, M
2006, ‘Guide to Performance Measure Management,’ 2006 edition
Rousseau, D
1997,’Organizational Behavior in the New
Organizational Era’, Annual Review of Psychology Vol. 48 p 515
Shaw, A
n.d. ‘A Guide to Performance Measurement and
Non-Financial Indicators,’ Public Relations. www.fpm.com
Credit:ivythesis.typepad.com
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