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Performance measurement and management questions with answers.
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Performance measurement andmanagement questions with answers.
Performance measurement ANS -process of quantifying the efficiency and effectiveness of action
performance measure ANS -metric used to quantify the efficiency and/or effectiveness of an action
PMS ANS -set of metrics used to quantify both the efficiency and effectiveness of actions
Levels of PMS ANS -- individual performance measures
- set of performance measures
- relationship between the PMS and the environment within which it operates
Components of contemporary performance measures ANS -financial and non-financial performance
measures, implicitly or explicitly linked to strategy
purpose of contemporary PM ANS -- informed decision making
- evaluate organizational and/or managerial
performance
Contemporary PMS ANS -- advocate the use of an array of financial and nonfinancial performance
measures
- translates business strategies into deliverable results
- provides the information that allows the firm to identify the strategies offering the highest potential for
achieving the firm's objectives
- evaluate performance for either informational or motivational purposes
Consequences of contemporary PMS ANS -- way these systems are designed, developed and used bring
about performance
,- internal and external factors mediate and/or
moderate relationship with performance
Control problems and 'levers' of control ANS -- Core values -> Beliefs systems
- Risk to be avoided -> Boundary systems
- Critical performance variables -> Diagnostic control
- Strategic uncertainties -> Interactive control
Belief systems ANS -Guiding the creative process of exploring new opportunities; instil widely shared
beliefs
Boundary systems ANS -Negative, limiting role of circumscribing the domain where the company seeks
new opportunities
Diagnostic control systems ANS -Monitor, assess and reward achievement on key areas of performance
Interactive control systems ANS -Encourage organizational learning and the process of development of
new ideas and strategies
Accountability requires... ANS -- Few measures
- Results, outcome
- Used for summative assessment
- Valid and reliable
Learning requires... ANS -- Many measures
- Different types (linkages?)
- Used for formative assessment
- To be able to raise questions, combine data with other information
Coercive ("mechanistic") control ANS -- Control is constraining and restrictive
, - Employees are to comply
- Not to think, understand, or question
- Clarify expectations, increase efficiency, curb opportunism
Enabling ("organic") control ANS -- Control is empowering
- Employees are to be informed and involved
- To think, understand, and question
- Increase autonomy, empowerment,engagement
Design principles of enabling control ANS -Repair
- capabilities to fix breakdown of processes by the users
• Internal transparency,
- understanding of the working of local processes
• Global transparency
- understanding of where and how these local
processes fit into the organization as a whole
• Flexibility
Effectiveness ANS -extent to which customer requirements are met
Efficiency ANS -how economically the firm's resources are utilized when providing a given level of
customer satisfaction
prevention costs ANS -costs expended in an effort to avoid discrepancies
appraisal costs ANS -costs due to evaluation of quality and detection of discrepancies
failure costs ANS -result of discrepancies ( internal and external)
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