Business Performance and the Role of HR in Business Planning and Change Management Agenda

Business performance and the role of HR in business planning and the change management
agenda
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Evaluation of Business performances
Business performance is defined as an evaluation of performance management and
analytic process that fuels an organization ability to achieve pre-selected objectives and goals.
There are various tools and key performance indicators that are contemporarily used in
organizations to measure performances in diverse departments. The indicators are categorized as
either financial or non-financial performance indicators.
Key performance indicator Evaluation and its performances measurements
Financial performance indicators
Return on Investment (ROI) ROI is evaluated by = net profit/ total investment * 100
Gross profit margin Total revenue minus total costs of producing goods and services
Net income Total expenses- minus total revenues
Earnings before interest and after taxes (EBIT) Revenue minus expenses ( excluding interests and tax)
Current ratio Current assets/ current liabilities
Non-financial indicators Evaluation and its performances measurements
Employee satisfaction Through the evaluation of appraisals
Market share Benchmarking with competitors performances in the same industry.
Customer satisfaction and reputation Evaluation of 360-degree surveys, reviews and feedbacks from
customers can give effective insight regarding the organizational
performances.
productivity Evaluation of daily, monthly and annual reports.
Attainment of objectives Evaluation of targets and goals