Performance Measurement in Tesco: Advantages, Disadvantages, and Transition to KPI

PROJECT

Table of Contents
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
What it is.................................................................................................................................4
Advantages and disadvantages...............................................................................................4
Widespread is it used/effectiveness........................................................................................5
Tesco's use of the technique and its effectiveness..................................................................6
Reason of changing measurement instrument in the organization ........................................7
key performance indicators and benefit of using same..........................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Performance measurement is the process of collecting, analyzing and/or reporting
information regarding the performance of an individual, group, organization, system or
component. Tesco is the larger retailer firm in the UK. They generally used to operate in 13
different country. This report highlights the measurement tool which is used by Tesco to carry
out different operation of the business. After that the report highlights the advantage and
disadvantage of using same in the organization. After that the report highlights the reason which
has force the organization to use KPI instead of Balance scorecard. In the end report highlights
the meaning of KPI and advantage of using the same in the organization.
MAIN BODY
What it is
Performance measurement, it is the term used to measure the performance of the employee in the
organization. This is generally done in the organization to collect different information regarding
current situation of the business and to find out the different basis through which different
decision can be taken in the organization.
Tesco, largest retail firm in the local market used to measure the performance of the business
with the help of balanced scorecard technique in the organization. In this technique organization
used to see the perspective of four different places in the organization. The places are Financial
perspective, customer perspective, internal perspective and growth perspective of the Tesco.
After that Tesco used to link the measurement of the company strategy for meeting the key
business goal of the business. This used to help the Tesco in linking the performance of the
business with the vision, objective and goal of the business in long run. Tesco generally used to
called this measuring system as a steering wheel in the organization (Vu, 2016).
Advantages and disadvantages
There are many benefit and drawback which has been seen by the organization in using
the same in the organization. Some of the benefit and drawback of using balance scorecard are as
follows:
Benefits:
 Balance scorecard help organization in better strategic planning in the organization, as it
used to help the Tesco in getting good sort of framework, on the basis of which different
strategy can be developed and communicated in the organization. Reason behind the