Performance Management in Service and Manufacturing Industry

Performance
Management

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
KPIs in service and manufacturing industry..........................................................................3
What makes it difficult to measure performance in service industry.....................................4
Financial and non-financial factors within performance management..................................5
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Performance management is a continuous process where the performance of employees
of company is identified, measured and developed so that their capabilities and sills can help the
organisation in achieving its objectives in an efficient manner. In this report Investment Services
UK Ltd (ISUL) is taken which is an idea-centric wealth and investment advisory firm which help
professional investors in covering markets. Also Openhouse Products Ltd is taken which is a
manufacturing company that designs and manufacture bags for emergency and health sectors. In
this report the KPIs of service and manufacturing industry, difficulty in measuring performance
in service industry etc. will be discussed.
MAIN BODY
KPIs in service and manufacturing industry
Key Performance Indicators are the measurable values that help in determining how
effectively a business is able to achieve its business objectives. This will help the businesses like
ISUL and Openhouse Products Ltd in determining their ability to achieve their goals through
their performance.
Some KPIs used in service industry:
 Customer satisfaction: It is the ability of a business to satisfy its customers by providing
them high quality of services so that they can remain loyal to the company and continue to
take servicers from the same company (Mone, Londo, & Mone, 2018)
 Employee engagement: It is the level of involvement of employees in making decisions and
their commitment towards company so that they use their skills and talents in achieving
company goals.
 Cost of service delivery: It is the ability of business to reduce its cost of delivery of service
so that the profits of business can be maximised while minimising its costs.
 Employee satisfaction: The level of employee satisfaction determines their willingness to
use their complete talent in achieving company goals which indicates that the business is
doing well.
Some KPIs used in manufacturing industry:
 Capacity utilisation: It is the ability of a business to utilise all its tools, equipments and
machinery in an efficient manner so that production capacity can be completely utilised.