Performance Measurement to Support Business Strategy - Understand the reason why performance measures differ across levels of the organization
4 important questions on Performance Measurement to Support Business Strategy - Understand the reason why performance measures differ across levels of the organization
Effective performance measurement is based on two factors:
- It leads all organization members to focus on the organizations objectives and reflects how individuals or units contribute to those objectives.
- It is designed to reflect the decision authority delegated to local managers. This is important because decision authority determine what the manager controls.
Non-financial performance measures at low-managers level:
- Customer satisfaction
- Product quality
Non-financial performance measures at middle-managers level:
- Ammount of unwanted employee turnover
- Frequency of meeting customer delivery requirements
- Employee development performance
- Succes in dealing with business partners
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Non-financial performance measures at high-managers level:
- Focuses on determining whether the organzation is meeting its responsibilities from the perspective of its stakeholders.
The question on the page originate from the summary of the following study material:
- A unique study and practice tool
- Never study anything twice again
- Get the grades you hope for
- 100% sure, 100% understanding
