One management. Organisational level indicators prevail in Strategic management

One of
the biggest challenges for performance measurement is integration of different
aspects of organisational performance, which are very different by their
nature, are measured by completely different, not comparable indicators.
Organisational and individual-level performance indicators, although naturally
and organically linked, but, nevertheless, are measured in different
dimensions, could serve as an example.

 

Performance
measurement, in one or another form, is spread across various management
disciplines: Strategic management, Quality management, Process improvement, and
Performance appraisal as a part of Human resources management. Organisational
level indicators prevail in Strategic management systems, both organisational
level and individual level performance indicators can be found in Quality
management and Process improvement systems, and individual level performance
indicators are dominant in Human resource management. The link between the
indicators of these two levels is of particular importance, if they are not
properly connected, employees’ motivation and compensation for work becomes
quite formal and does not match overall goals of organisation.

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 The difference of the performance measurement
in the public and private sectors is determined not only by the different
nature of these sectors, but also by different historical traditions. Because
of the complexity of the public sector mission, private sector organisations’
performance evaluation can be regarded as an isolated case of performance evaluation
in public sector organisation”. Performance indicators should
be clearly distinguished from the factors determining the level of performance,
which are no less important, however, are often confused with each other.

The first
are used to monitor performance, the latter – to improve it. Individual level
performance indicators could be more useful in searching the factors
determining performance.

 

 Historically,
performance measurement systems used in different management areas are quite
different and very rarely integrated with each other. This is especially true
for a very weak relation between the measurement used in quality management and
process improvement on the one hand, and the organisations performance
evaluation and employee performance appraisal on the other. The difference of
the performance measurement in the public and private sectors is determined not
only by the different nature of these sectors, but also by different historical
traditions Performance indicators should be clearly distinguished from the
factors determining the level of performance, which are no less important,
however, are often confused with each other.

 

The first are used to monitor performance, the latter – to
improve it. Individual level performance indicators could be more useful in
searching the factors determining performance. Each organisation, regardless of
its size, type of product or service, belonging to the public or private
sector, strives to be effective.

 

 For this purpose,
various performance monitoring system are being developed, starting with the
traditional financial management systems and ending with complex strategic
management systems, which provide ability to monitor so important to the
success of the organisation aspects as the stakeholders’ satisfaction, the
quality of the internal processes, the ability to change and improve, and some
others. We would not be able to answer the basic questions, such as where we
are at the moment respectively to our objectives, how do we look in comparison
with its competitors, what are our development opportunities, as well as what
and how we have to change first, without such multi-faceted monitoring.

 

Terms and concepts of performance dimensions
(Summermatter, Siegel, 2009)
Dimension Subsumed
terms and concepts.

“Input
Costs, budgets, expenses, revenue, expenditure, economy, resources Throughput
(activities) Process, production process, organisational processes, activities
capacities, operations, volume of work, workload, levels of activity or of
proficiency, operating characteristics Output Results end of the production
process; quantity and quality of outputs, services Outcome Effects, results,
impacts, benefits, public value, accomplishments, consequence, Efficiency
Relation of efforts to outputs, the ratio of output to input, technical
efficiency, cost per unit of output, relative efficiency Effectiveness How well
services or programs meet their objectives, a measure of outcome, illustrating
the result or impact of a service, the extent to which customer requirements
are met, cost-outcome measures Additional types of ratios Productivity, value
for money, cost effectiveness, return on investment,  return on taxpayer money, unit or per capita
costs Quality of staff activity, services or outputs, extent to which the
nature of the output and its delivery meet requirements or are suitable to
their purpose, conformance, reliability, on-time delivery. Requirements (needs)
Targets, goals, objectives, standards, timeliness, pledges, benchmarks
Stakeholder related aspect, Consumer’s evaluation of various features or facets
of the product or service, based on a recent consumption experience,
satisfaction, trust of actors and stakeholders, customer satisfaction Value and
ethical aspects Equity, transparency, or other democratic values, equity,
equitable distribution of benefits, fairness”

 

“Although organisations
both in private and public sectors have a lot in common, but there are some
“genetic” differences. Profit maximization objective absolutely natural for the
private section organisations is not typical for the public sector organisations,
and the criteria for which to measure their activities are not sufficiently
clear and defined”

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