This website uses cookies to ensure you have the best experience. Learn more

Strategic Performance Measurement Systems (Sp Ms) Essay

2531 words - 10 pages

Table Of Contents
· Introduction……………………………………………………..1
· Balanced Scorecard System (BSC)…………………………….1-2
· Implementation of Balanced Scorecard in SMEs…………….3
Strategy Destination…………………………………………….3
Perspectives……………………………………………………..3-4
Measures ………………………………………………………5-6
· Challenges faced and possible recommendations for overcoming
it…………………………………………………………………7-8
· Limitations of BSC…………………………………………….8-10
· Conclusion………………………………………………….......10
· References…………………………………………………….10-12

2 | P a g e
Introduction
The progression of the Small to Medium Enterprises (SMEs) has been recognized for
the success of widespread development purposes which includes poverty mitigation,
advancement of democratic societies and economic development. (Henriques n.d). For
sustainable and completive environment it is necessary for organizations to measure the
how the organizations function.. The introduction of Strategic Performance
Measurement Systems (SPMs) has been identified as the effective strategy
implementation which measures past actions effectively through investigation and
analysis of appropriate data which translates into a diverse pattern of strategic decisions.
Traditional organization performance measurement systems analyses the financial
aspect. Due to globalisation, competition has increased both in the local and
international markets. This gives a clear view of organizational capacity in today’s
business markets. Besides in order to succeed in this dynamic environment, it is
essential for companies to associate with SPMs to the organisational strategy.
Organizations must monitor whether customer satisfaction is met and whether the cost
is under control. SPMS improves development but creates a significant rigidity; as a
result organisation finds it difficult to promote quality in operation and cumulative
innovation in creativity and variation. The conductors of SPMS aim performance
programs for their managers and executives which is consistent with the business
scorecards and maintains information technology that executes data analysis. This
paper examines the benefits and consequences of Strategic Performance Measurement
Systems (SPMs) in various organizations.
Balanced Scorecard System (BSC)
The Balanced Scorecard is a performance management mechanism which facilitates the
translation of strategies into a definite set of performance measure for the company. The
scorecard contributes an understanding of the long-term performance of an organisation
by accommodating financial measures with major performance barometers around
viewpoints of customers, internal business processes, and organisational development.
Therefore, the BSC was implemented to get rid of the restrictions of operating with
financial measures only. Kaplan and Norton (1992) introduced the balanced scorecard
to emphasize corporate focus on performance measurement improvement. When the
BSC is completely achieved it regulates an understanding of...

Find Another Essay On Strategic Performance Measurement Systems (SPMs)

HR Performance Measurement System Essay

617 words - 3 pages According to Becker, Huselid and Ulrich (2001), The HR performance measurement system is what will determine the influence HR has in the organization which is inclusive of their credibility as a strategic partner. Therefore, it is imperative that HR choose relevant data when choosing a performance-measurement system to assist with monitoring the progress of an organization like Creative Options and Employment (COE). As a nonprofit organization

The Mayo Clinic: A Performance Management Assessment

2363 words - 9 pages At its most fundamental core, quality improvement of healthcare services and resources requires disciplined attention to the measurement, monitoring, and reporting of system performance (Drake, Harris, Watson, & Pohlner, 2011; Jones, 2010; Kennedy, Caselli, & Berry, 2011). Research points to performance measurement as a significant factor in enabling strategic planning processes and achievement of performance goals (Tapinos

Understanding How Microsystems can Affect Macrosystems and Viceversa to Accomplish Stategic Direction within Healthcare Systems

2265 words - 10 pages can be as enormous as a comprehensive health care system. Larger systems face exceptional challenges in being able to design a performance measurement system that aligns with their strategic drive. These systems have to achieve two things concurrently. The first achievement would be to incorporate performance measures at the micro level, such as an individual clinician, a specific clinical unit, or an inpatient unit of care which gives meaning to

hrm sem 1

1726 words - 7 pages performancePerformance Management Reviews are conducted more frequently than annual appraisalsPerformance Management Objectives are aligned to strategic or operational plansPerformance Management systems typically have better compliance due to reporting (who has set objectives and development plans, conducted reviews etc)Performance Management focuses employees on the Performance of objectives, not how well they are liked by their managerPerformance

Dell’s Performance Measurements and Control Systems

1133 words - 5 pages Introduction Performance measurement and control are very important for any organization either government or business to measure the success of the organization and it is one of the most difficult parts of strategic management (Wheelen & Hunger, 2012). According to Crosson & Needles (2014), Performance measures are “quantitative tools that gauge an organization’s performance in relation to a specific goal or an expected outcome” (p 302). Many

Performance Measurement in Logistics Operations

1508 words - 7 pages strategic goals of the organizations is still yet to be determined. As Davidson (2006) states, the first steps for any organizations that are implementing a measurement system should be determine elements of performance that are most crucial to them then construct the right metrics to support those significant elements. In order to raise his theory to a practical level, Davidson (2006) did an interview in the headquarter of International Federation of

Reducing Fraud in Head Start

1173 words - 5 pages employees a focus on results rather than a procedural approach toward work. (Moynihan and Pandey 2004, 426) The greater the ability of public organizations to reorganize processes and match individuals to the right position within a mission-based organization, the greater the ability of the organization to achieve performance. (Moynihan and Pandey 2004, 426). Strategic, performance measurement-based management systems allow an organization to align

Performance management in the framework of public accountability in Estonian Local Governments

807 words - 4 pages information can be made between performance reporting as an accountability tool and performance management as a steering tool (Greiling 2006). Over two-thirds of OECD countries include non-financial performance information in their budget documents (Curristine et al 2007). According to Estonian legislation Local Governments in Estonia currently have to compile strategic plans, prepare the annual budgets in accordance with the strategic plans

An Application of Malcolm Baldridge Quality Principles

1207 words - 5 pages support and commitment. Application of the Baldridge Principles The principles of quality improvement and sustainability embodied in the Baldridge criteria comprehensively address the internal and external environmental dynamics that influence successful performance. Because the criteria account for the essential elements of a performance system – leadership, strategic planning, stakeholders, operations, workforce, measures, and performance results

This is about modern management theory on value based management. It introduce concept of balance scorecard as a modern management tool

1673 words - 7 pages with these questions each day, they confront the reality that, "If you can't measure it, you can't manage it." In other words, effective performance management requires accurate performance measurement.Leaders also understand that performance measurement itself is not enough. The value of measurement is that it identifies where action should be taken. So, effective performance measurement systems must be able to:· Accurately reflect a

Human Resource Management

1168 words - 5 pages , economy or an organization. There are five items on the strategic plan that are the responsibility of Human Resource Management: 1. Staff Development Strategy 2. Performance Measurement Plan 3. Organizational Efficiency Restructuring Plan 4. Employee Data Protection Policies (HIPAA) 5. Benefits Plan Staff Development Strategy The office of Staff Development (SD) is dedicated to supporting and enhancing the skills of all faculty and staff at

Similar Essays

Performance Measurement Systems Essay

1700 words - 7 pages Performance measurement systems (PMS) have been around for some time and even though it is typically used by businesses, measuring performance is something people do on a regular basis. Measuring performance involves setting goals and developing a plan to achieve the desired results. Part of the planning processes involves determining how to measure performance as you work towards a goal. Measuring progress provides information that can be used

Performance Measurement Systems In Business Essay

592 words - 2 pages organizations and flurry of activities in the business environment demand managers to take on performance measurement systems, while it has less impact on SMEs due to centralized control, decision-making and initiatives around a leadership figure (Child, 2005). The existing practices of strategic planning greatly depend on the size of the company/extent of diversification and in what market segment it operates. Child (2005) stressed the choice

Traditional And Contemporary Performance Measurement Essay

1241 words - 5 pages the shareholders. This differentiate the Performance Prism from other performance measurement systems, including BSC which give shareholders priority over other stakeholders. Last but not least, the performance prism does not decide who should be considered as the most important stakeholders while BSC defines two of them: shareholders and customers (Purbey & Bar, 2006). It is because Performance Prism believes that other stakeholders, such as

Employee Performance Measurment Essay

2246 words - 9 pages stakeholders in determining whose interests will predominate in an organization and the consequent effects on what aspects of performance are measured, reported and acted upon. Conclusion Performance measurement systems, which assess an organization’s performance against indicators, have been applied in all sectors. Although performance assessment is not a new phenomenon to the public sector, performance measurement has undergone considerable changes