Performance Analysis and Measurement in Business Organisations Essay

This essay delves into the critical role of performance measurement within organizations, emphasizing its significance for strategic alignment and employee evaluation. It explores various tools and techniques, including 360-degree feedback, balance scorecards, and self-evaluation methods, illustrating their application in assessing and enhancing employee performance. The essay also examines the Malcolm Baldrige model as a framework for quality standards and performance improvement. Furthermore, it highlights real-world examples from companies like Google and Accenture, showcasing how these organizations implement performance measurement strategies. The analysis extends to the advantages and potential drawbacks of performance measurement, considering both positive impacts on employee capabilities and potential negative consequences such as demotivation. The essay concludes by summarizing the importance of appropriate tools and techniques to enhance organizational profitability through improved employee performance and offering insights for future research and practice.

ESSAY

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6
APPENDIX......................................................................................................................................7

ILLUSTRATION INDEX
Illustration 1: Malcolm Baldrige model...........................................................................................7

INTRODUCTION
Organisation performance measurement is a process where management of company uses
systematic approach to improve strategic aims and objectives. Further, manager of company set
the performance measurement of each group and individual person working in the enterprise
(Morrow, MoodDisch and Kang, 2015). In organisation, it is very important and directors think
that organisation performance measurement should be considered as a starting point for
analysing organisational performance. Present essay is based on performance analysis of each
employee and how firm increases its capabilities by using different tools and techniques.
MAIN BODY
For the better development of organisation, performance measurement is a necessary
thing. Due to this, most of the companies use it as a main area of focusing at the starting point of
analysing the overall performance of firm (Taticchi, Tonelli and Cagnazzo, 2010). At the time of
performing various business operations, the aim of the company is to maintain performance
level. By doing this, they analyse the efficiency of business performance and also evaluate how
they handle all the difficult conditions at workplace. Further, it is the responsibility of leader to
evaluate performance of their workers. The main reason behind this is the right amount of
contribution of employee’s efforts that helps the enterprise to get success. By using performance
management, leading person of company minimise the communication gap among all staff
members.. By using different tools and techniques, they can easily find out what their
stakeholders want from them. Further, it justifies all programs and their cost (Zairi, 2012). On
the other hand, there are also some benefits of performance management and are as follows:
 To identify the needs and requirements of customers.
 By using organisation performance measurement, workers of company enhance their
working capabilities.
 By using performance management, manager of organisation solves the problems of
workers by motivation.
In organisation, management uses different kinds of tools for measuring the level of
performance and are as follows:
360 degree feedback
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It can be considered as a tool of performance management of a company. Leading person
of organisation takes feedback from their customers and other employees (Baghsorkhi, Delahaye
and Hwu, 2010). In this process, they ask some question about their performance to their sub
coordinators such as employees. By doing this, they analyse the performance level of the
candidate. The negative point of this tool is that most of the time other person cannot give right
information about the organisation performance and by this it does not necessarily means that
manager does take right decision for the business (Sundaresan, De Donatoand Pescapè, 2011). In
360 degree feedback, manager also takes feedback from their customers about the employees. As
per client’s comment, manager of company set appraisal and incentives for their staff members.
Balance scorecard
Balance scorecard is a tool of strategic planning where manager of organisation keep
tracking all the activities of their workers and other business activities. In this, team leader of
organisation analyse the performance of their staff members. According to their performance,
leading person gives marks to the individual personnel (Franco-Santos, Lucianetti and Bourne,
2012). For example, team leader gives them marks as per their punctuality, attitude,
communication, ability to handle conflicts etc. According to their performance, team leader gives
marks and in the end of month, they announce star performer of company.
Self evaluation
It is one of the best and innovative methods where employees rate themselves as per their
performance. By doing this, they can easily find out their positive and negative points. This
method of organisation performance measurement increases the level of credibility and also
raises the views of employees which are based on self confidence (Bititci, Garengo and
Nudurupati, 2012). This tool also offers the process of discussion where employees discuss their
weak points with their senior authority.
As per Taticchi, Tonelli and Cagnazzo (2010), it is important for managing directors of
the organisations to analyse the performance of all the workers from their starting point. Due to
this, it becomes tough and challenging job for all senior authorities to measure employee’s
performance. For this, they use some models which are explained as follows:
Malcolm Baldrige model
This model explains the standard of quality where by using this model, companies easily
evaluate the performance of other staff members (Muchiri, Pintelon and Martin, 2011). This
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model is based on some facts and factors which are necessary for employees to recognise at the
time of dealing with customers. They are like;
 Analysis of the needs and demands of customers,
 Use of effective leadership while working in a team,
 Planning a better strategy for solving all problems,
 Putting focus on allotted work and;
 Time to time feedback and analysis of performance.
With the help of this model, every employee follows all these factors to increase their
profit as well. Now-a-days, most of the companies are using organisation performance
measurement in their internal environment in order to enhance profit as if development of staff
members is directly proportionate to the productivity of the organisation.
Google
Google Company is famous for its employee’s welfare. For this, the director of
organisation, KPCB's John Doerr updates their style of working and set goals and objective of
the company. In their internal department, organisation uses non-traditional organisation
performance measurements. It means all employees are free to do their work as per their own
style and methods. For checking the performance of their staff members, manager of this
company takes feedback from their customers (Morrow, MoodDisch and Kang, 2015). The
reason behind this is that customers are the key elements of the company and employees are
developed and trained to effectively deal with clients in order to suitable manner.
Accenture
For organisation performance measurement, company team leader and manager use self
promotion technique. By using this technique, workers evaluate their positive and negative
points and if they feel that they require some training then they are free to ask for this to their
respective team leaders and management (Taticchi, Tonelli and Cagnazzo, 2010). By applying
this technique, company’s manager increases the capabilities of their workers.
Organisation performance measurement is divided into four categories. Most of the
organisations uses these categorise for increasing the level of performance of their staff
members.
In first category, manager of company analyses the skills, communication, and
coordination and how staff members handle the queries of customers. If they feel that their all
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employees are perfect in these qualities so it is good for company otherwise, human resources'
department provide them proper training and by providing proper guidance they enhance the
qualities of their staff members.
By using organisation performance measurement tool, team leader analyse the positive
and negative points of each worker (Zairi, 2012). Then, by providing proper solution, they
covered their negative points and change it into positive factors.
In third category, company divides their whole work into the teams. By using this
method, senior authority of organisation raises the knowledge of each employee and also
develops their working capabilities. By this, they can easily do their work and give their
complete efforts to the organisation. By doing team work, they can easily develop their
performance.
The last category is based on feedback. In this, leading person takes feedback from
employees and customers and as per their reviews; they put some appropriate changes
accordingly. On other hand, some negative points have direct impact on the performance of
employees like; some family problems, discrimination, environment of organisation, etc
(Baghsorkhi, Delahaye and Hwu, 2010). So, it is important for company to clear all the roles and
responsibility to each employee. By doing this, all workers easily do their work without any
stress,,for better development, organisation can use health and safety acts, discrimination act,
equal pay act. So with the help of these acts, employees do not feel that their manager does
comparison on ground of their race, sex and gender and they can easily do their work without
any stress.
Sometime, organisation performance measurement creates some problems at workplaces.
The reason behind this is that manager of company judges their employee’s performance
according to their work but he does not try to identify the actual reason behind their decreasing
performance in organisation (Sundaresan, De Donatoand Pescapè, 2011). It de-motivates all
employees and they are not able to give their best output to company. Further, employee’s
morale suffers under this performance measurement process. The reason behind this is that all
time they are trying to prove them more efficient as compare to other staff members. So, at that
time workers cannot develop their efficiency and cannot enjoy their work as well. Due to this,
after some time workers are getting distract from their work and cannot give their best
performance to organisation. The major problem with these measures techniques are, all these
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things decreases the level of thinking of employees. According to staff performance, team leader
of organisation set their incentives, appraisal and promotions so by the wrong prediction of
manager, incentive of workers goes down and they feel de-motivated at workplace (Franco-
Santos, Lucianetti and Bourne, 2012). Further, performance measuring tool are expensive and
time consuming. The major negative points of organisation performance measurement tools are
it creates lots of stressful environment in everyone mind.
If all companies use organisation performance measurement process as its starting point
then they can save their time. The reason behind this is that every company spends lots of money
and time for training and development process of their staff members. By using organisation
Performance measurement’s tools and techniques, they can find out that their workers are
capable for the job or not (Bititci, Garengo and Nudurupati, 2012). So by this, they can save their
money and can invest it in other department. Further, by using different tools and techniques,
manager of company increases the capabilities of workers from the starting points of their
joining and also clear the working structure of company.
CONCLUSION
According to the present essay, it has been concluded that performance measure of
employees is important for the better development of organisation. By using appropriate tools
and techniques, manager of company can easily increase the capabilities of their staff members.
Further, with the help of different tools, they can find out the positive and negative points of their
employees and by providing proper training, organisation can clear the doubts of their staff
members and increase the profit of company.
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REFERENCES
Books and Journals
Baghsorkhi, S. S., Delahaye, M. and Hwu, W. M. W., 2010, January. An adaptive performance
modeling tool for GPU architectures. In ACM Sigplan Notices. 45(5). pp.105-114.
Bititci, U., Garengo, P. and Nudurupati, S., 2012. Performance measurement: Challenges for
tomorrow*. International Journal of Management Reviews. 14(3). pp.305-327
Franco-Santos, M., Lucianetti, L. and Bourne, M., 2012. Contemporary performance
measurement systems: A review of their consequences and a framework for research.
Management Accounting Research. 23(2). pp.79-119.
Morrow Jr, J. R., MoodDisch and Kang, M., 2015. Measurement and Evaluation in Human
Performance. 5E. Human Kinetics.
Muchiri, P., Pintelon and Martin, H., 2011. Development of maintenance function performance
measurement framework and indicators. International Journal of Production Economics.
131(1). pp.295-302.
Sundaresan, S., De Donatoand Pescapè, A., 2011, August. Broadband internet performance: a
view from the gateway. In ACM SIGCOMM computer communication review.41(4) . pp.
134-145.
Taticchi, P., Tonelli, F. and Cagnazzo, L., 2010. Performance measurement and management: a
literature review and a research agenda. Measuring business excellence. 14(1). pp.4-18.
Zairi, M., 2012. Measuring performance for business results. Springer Science & Business
Media.
Online
Tata’s Baldrige Advantage: A Multinational’s Model for Performance Excellence. 2015.
[Online]. Available through: <http://blog.bpir.com/business-excellence/tatas-baldrige-
advantage-a-multinationals-model-for-performance-excellence/>. [Accessed on 4th June,
2016].
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APPENDIX
Malcolm Baldrige model
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Illustration 1: Malcolm Baldrige model
(Sources: Tata’s Baldrige Advantage: A Multinational’s Model for Performance Excellence,
2015)