Organizational Health Management - Performance & KPIs

MANAGEMENT OF ORGANIZATIONAL HEALTH 1
MANAGEMENT OF ORGANISATIONAL HEALTH
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MANAGEMENT OF ORGANIZATIONAL HEALTH 2
Introduction
The Functions and importance of Performance Management and measurement
Performance measurement is essential approach whereby a business is able to screen and
measure the essential parts of its projects and frameworks. Performance measurement is a
procedure by which an association screens essential parts of its projects and frameworks.
Information is gathered to reflect how its procedures are functioning, and that data is utilized to
drive the firm's decisions for a period of time. Normally, performance of a certain company is
estimated and contrasted with its hierarchical goals and targets (Amstrong , 2009). With use of
performance measurement, managers are able to use the information gotten to determine how the
company's current projects are functioning and how its assets can be maximized to enhance the
program's efficiencies and adequacy. It likewise guarantees that the hierarchical objectives, goals
and its subsystems are reliably met in a productive and powerful way.
Advantages and disadvantages of having KPI’s
KPI refers to the quantifiable measure that is utilized by the organization to find out whether the
firm’s goals and objective are being met. Its merits are that it helps managers to be able to
establish accurate performance targets as it identifies significant indicators of an organization’s
success (Pamenter, 2010). Besides, KPI plays a key role in helping one to analyze areas where
business excels or fails and where it can be improved. Its demerit is that one has to assess if
indicators of the company are met by workers and compare them to competitors.