Added on  2019-09-23

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2What is PERFORMANCE MEASUREMENT?3rd August, 2019Performance measurement is mainly regarded as the day-to-day measurement of the results aswell as outcomes, which in return produces trustworthy data on the efficiency and effectiveness of the programs. Besides, there are some of the resources such as time of the workers, human resources and funding that is used for conducting the activities as well as providing the services. There are a lot of definitions with regards to the performance measurement. However, one of the most general definition of the performance measurement is that it is mainly connected with a kind of measurement in terms of performance there is only little consensus about how performance measures can be used or defined. Some of the simplest frameworks that are used by the companies for measuring the performance are the key performance indicator and the balanced scorecard. The performance measurement can be mainly understood via considering the definitions of the words such as ‘measurement’ and ‘performance’ as per to the Baldrige criteria. Measurement is mainly the numerical information that tends to quantify the output, input along with the performance dimensions of products, processes, services as well as the entire company. Furthermore, the measures of the performance can either be composite or even simple. On the other hand, performance is regarded as the output results and their outcomes that are gathered from products, processes and the services that tend to permit evaluation and comparing relative to standards, goals, previous results and other companies. Besides, performance can be expressed in both non-financial and financial terms. One of the main challenges that is faced by the companies in the recent times is that how to align and match performance measures with the strategies of the business, corporate culture, structures, the

3number and type of measures for using, and how to deploy the measures so that the outcomescan be used.Entities that uses performance measurementTo some extent each and every companies measures the performance. On the contrary, there is a huge disparity among companies with regards to which of the performance measurement are used with a lot of them focusing on the financial measures. Performance measurement can be regarded as one of the most important elements for the excellence in the businesses. The business excellence model always tends to encourage using the performance measures, but additionally the design of the performance measurement systems is considered by them for making sure that the measures are completely aligned to the strategy. There is a new report by the Performance Measurement Association on one of the new frameworks of the performance measurement. Interestingly, the balanced scorecard was highlighted as one of the most popular of this specific method. Furthermore, most of the firms out of the Fortune 500 companies use this method for the performance measurement. Common challenges with the performance measurement approachIt has been observed that there are some of the most common challenges of the performance measurement approach. Below are some of the common features of the performance measurement systems that are outdated such as: Failure for measuring all the factors that tends to create some value, measuring innovation in a poor manner, dominant other backwardlooking indicators or financial indicator, and immediate or concentration rather than the goalsthat are for long-term. On the other hand, there are also some of the challenges faced regarding designing the performance measurement system that is effective such as: what measures can be choosen and why? The people responsible for using the results, how to

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