Performance Measurement in Organizations

This assignment delves into the crucial concept of performance measurement within organizations. It examines various models such as the Balanced Scorecard and the Malcolm Baldrige model, explaining how they can be used to assess employee and organizational performance. The essay highlights the importance of performance measurement for achieving business goals and objectives, discussing its impact on different departments like finance, marketing, and production.

Essay on Organisational Performance
Measurement

Table of Contents
Introduction and Overview .............................................................................................................3
Demonstration of Knowledge Theory and Models .........................................................................3
Development of Answer in Response to the Scope of the Question/Conclusion............................6
Conclusion ......................................................................................................................................7
REFERENCES................................................................................................................................8

Introduction and Overview
In present business environment, an organisation can not sustain or survive if the
employees are not able to effectively and accurately accomplish his or job roles. An organization
may have some products and services that are important for the daily activities but if the
company does not have effective workforce or human resources to complete the various business
functions it can not be successful. Therefore, it is very essential for a company to develop and
utilize effective measure to analyze and monitor the performance of the employees so that the
business can achieve its goals and objectives effectively and efficiently. The Organization
Performance measurement is a very important approach that assist an organisation to track the
progress of the employees as well as any undergoing project. This is essay is in context to the
nature and understanding the organizational performance measurement. The essay will discuss
the importance of organizational performance management and the various models or theories of
knowledge demonstration will be described in the following essay report.
Demonstration of Knowledge Theory and Models
There are various theories and models used for measuring or managing the performance of the
employees working in an organization, these models and theories are as described below -
 Burke- Litwin change model – The model of performance measurement was developed
in the year 1992 by two business change consultants. This model is used in order to
determine the components parts of an organisation and to understand the relation among
each other during a time of change. The most common reason for a change initiative
failing is each and every area within an organisation is affected by a change are not at all
accounted for. Hence, implementing this model the organisation can identify the areas of
the business which are getting affected and the relation between them. This model helps
to understand the effect of change on the performance of the employees working in an
organisation or business and also measure the change in performance due to the change in
the business environment(Buckingham and Goodall,2015).
 Balance scorecard – The Balance scorecard model is very essential approach for the
managers in achieving competitive advantage, in present world the organizations are
competing into a tangled and intense environment where determining the organizational
goals and objectives as well as the ways they can be achieve. The Balance scorecard
translates the organizational mission and plans into a set of indicators that provide a

model performance measurement system. This model of performance measurement assets
the business performance with the help of four factors – clients, financial, learning and
growth and the internal processes.
 Malcolm Baldrige model – This model of performance measurement was developed in
the year 1987 by the United states commerce department in order help the organizations
in measuring and managing the quality of the performance of the business and the
employees. This model assisted in allowing an organization to achieve its goals and to
enhance the outcomes as well as become more competitive by developing effective
strategies, decision, processes. Actions, people and results. The Malcolm model has
seven elements such as leadership, customer focus, strategic planning, analysis
Illustration 1: Balance scorecard
(Source : Balanced Scorecard Basics, 2016)

knowledge management, workforce focus, measurement, operation focus and outcomes
or results.
 Performance Prism – The interest for performance measurement has been larger in the
last years, the performance prism was developed to be very flexible and to provide a wide
or narrow focus according to the need of the organization or business.
Illustration 2: Malcolm Baldrige model
(Source: Business Excellence Models, 2016)

(Source :THE PERFORMANCE PRISM, 2018)
Development of Answer in Response to the Scope of the Question/Conclusion
Performance measurement system can be very effective for each and every organisation
to achieve its goals and objectives easily and efficiently. The measurement of performance can
be useful for various areas of a business or organisation. Traditional performance management
system may motivate and influence conservatism and play safe attitude among the employees of
an organization. The managers are required to be motivated in order to identify defined areas in
which a degree of risk taking and experimentation may be beneficial. The holistic view of
performance measurement follows the approach of cybernetic model, which has been broadened
in order to consider the addition of a second higher order feedback loop for controlling the goal
setting(Van,Bouckaert and Halligan,2015). The Performance measurement is very important in
each and every department of an organisation such as financial department, management
department, production department marketing department etc. The Performance measurement in
financial department helps an organisation to monitor the financial condition of the business,
performance measurement in the marketing department helps the business to analyze the
effectiveness of various marketing activities. Production function should also be measure in
terms of performance to ensure the best activity or method of production is used by the
organization to achieve the maximum productivity. The employee's performance measurement is
Illustration 3: Performance Prism

also important for identify the quality of their performance, the increase or decrease in their
working outcomes. Performance measurement can help to identify the downfalls of each and
every are of a business as well as helps in developing most appropriate strategies to overcome
the downfall.
Conclusion
The above essay concluded that performance measurement is a most important approach
or activity which needs to be performed by each and every organization to achieve their business
goals and objectives. The essay describes the meaning of performance measurement with the
various models and theory which can be used in order to measure the performance of the
employees as well as the organisation such as Malcolm Baldrige mode, Balance scorecard,
Performance Prism etc. The Essay describes nature, scope of the performance measurement
concept and the importance of practicing it within an organization or business to achieve success.

REFERENCES
Books and Journals
Van Dooren, W., Bouckaert, G. and Halligan, J., 2015.Performance management in the public
sector. Routledge.
Buckingham, M. and Goodall, A., 2015. Reinventing performance management. Harvard
Business Review,93(4), pp.40-50.
THE PERFORMANCE PRISM 2018 [Online]. Available through:
<http://www.accaglobal.com/an/en/student/exam-support-resources/professional-exams-study-
resources/p5/technical-articles/performance-prism.html>.
Business Excellence Models, 2016 [Online]. Available through: <http://www.bpir.com/business-
excellence-bpir.com/menu-id-73/expert-opinion.html>
Balanced Scorecard Basics, 2016 [Online]. Available through:
<http://www.balancedscorecard.org/BSC-Basics/About-the-Balanced-Scorecard.