performance measurement system

An integrated model of performance measurement includes these levels of implementation:

  • Strategy development and goal deployment (Senior Management).
  • Key result areas (KRA). The limiting number of areas in which results will ensure successful competitive performance for the organization.
  • Key performance indicators (KPI). The actual measures used to quantitatively assess performance against the critical success factors. There should be at least one KPI for each.
  • Process management and measurement (PPM) includes measures of inputs, process, and outputs. Outputs from a supplier form the inputs to the next customer. It is only necessary to define the process and output. (Process Management Level)
  • Process measures monitor the activities of a process and motivate people within a process.
  • Output measures report the results of a process and are used to control resources.
  • Performance appraisal and management (PAM) includes two linked elements.
  • Performance management. Systematic data-oriented approach to managing people at work on an on-going basis.
  • Performance appraisal. Process by which organizations establish measures and evaluate individual employees’ behavior and accomplishments.

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