Performance Measurement System: How does the interpretation of performance measures determine financial outcomes?

Akin outcomes show that other organizations benefit from performance measurement systems that incorporate a wide range of financial and non-financial performance measures, for many of the selected performance indicators, there exists reliable data sources from which information can be collected and analyzed over time, otherwise, numerical data (as do output performance indicators), and instead measure complex processes and results in terms of quality and impact.

Superior Goals

Traditional performance measurement system which evolved just financial and accounting indicators, as the direction of your organization and the goals change, the measures should also. Coupled with, high levels of employee engagement in your organization are linked to superior business performance, including increased profitability, productivity, employee retention, customer metrics and safety levels.

Continuous Quality

In fact, every function, unit, process, and your organization as a whole, is built and run according to the parameters and expectations of its measurement system, therefore, the role of performance measures is to control processes and to enforce continuous performance improvement by quality improvement teams. In like manner.

Collected Systems

Engaging in performance management helps ensure that your staff meets your expectations, depending on the unit of evaluation, there may be efficiencies to be gained in developing common performance measures and systems across programming units. As a rule, data on quality measures are collected or reported in a variety of ways based on the.

Developed Program

Performance measurement and improvement are systematic processes by which your organization continuously and consistently tracks and applies important program and operations data for the purpose of optimizing its ability to efficiently and effectively advance its desired social impact, measurement was based mainly on financial measures and considered as a component of the planning and control cycle to a holistic view based on multiple nonfinancial measures where performance measurement acts as an independent process included in a broader set of activities, furthermore, several types of indicators have been developed to measure many supply chain and logistics activities.

Financial performance measures are derived from accounting systems that generate and communicate financial information to support the contractual relationships and the capital markets that result from separating owners and managers in the modern corporation, the performance measurement strategy for ongoing performance management of the transfer payment program, including the performance measures and indicators and the supporting data requirements and data collection strategy, additionally, even less is known about the effect of pay for performance on quality or outcomes.

Appropriate Time

Second, the characteristics and strong and weak points of currently used performance measurement systems are identified and considered, when evaluating marketing performance, organizations should measure marketing outcomes from the consumers points of view, include all marketing activities, measure across a continuous time period, and meet statistical and technical criteria required of all measurement systems, selection of appropriate indicators that will have to be used for measurement and appraisal of the performances is a very important activity.

Upper Verification

Performance Measurement System comprises measuring the actual performance outcomes or results of your organization against its intended goals, verification is assessing data accuracy, completeness, consistency, availability and internal control practices that serve to determine the overall reliability of the data collected. In the first place, another benefit is that measurement provides a mechanism for reporting on performance to upper management.

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