Business Management - Evaluaton of organisational performance
Evaluaton of organisational performance
There are numerous ways organisations collect data
An evaluation or assessment of an organisation's performance needs to be
undertaken in order to ensure that the objectives of that organisation are
being met. It does not matter whether the objectives are long, mid or
short-term, there is no point in setting objectives if you do not intend to
measure whether they have been successfully met. Such as assessment of
performance will measure the of the organisation. In addition, the way
that the organisation employs and uses its resources to achieve these goals
and objectives must be evaluated to see whether these resources are being
used to their optimum capacity. Such an assessment of the organisation's
performance will measure the of the organisation's operations. In addition
to measuring the performance of the organisation as a whole, the
performance of individual employees or teams of employees may be measured,
as well as the performance of sections or departments of the organisation.
Such evaluations will be carried out for different purposes.
There are three stages to the evaluation of organisational performance.
Firstly, we need to know WHAT it is we intend to measure the performance
of, i.e. the indicators or the criteria. Secondly, we need to know HOW we
intend to measure these indicators or criteria. Thirdly, we need to
establish what we intend to do with the outcomes of the evaluation process.
Organisations will look at their principal objectives, their core
functions, and the key elements of their policies, then prioritise the key
indicators or key result areas that they want to measure. Next, a specific
criterion, measure or indicator will need to be established. These
indicators will either be quantitative or qualitative in nature.
Quantitative indicators are 'objective', as they measure aspects of
performance that are quantifiable and are not subject to variation once
they have been defined, e.g. the number of employees, the level of profit,
the number of industrial accidents, the number of customer complaints.
Qualitative indicators are, on the other hand, subjective in nature and
vary according to who is providing the information, e.g. the level of
customer satisfaction, the level of employee satisfaction, or the level of
customer service. Organisations will select a number of key performance
indicators (KPIs) to measure the key objectives or elements of
organisational policy. Next, the organisation must decide how the data will
be collected, i.e. the method that will be used. A number of options exist
- statistical research, survey, observation, questionnaire, and
benchmarking. An organisation may use a variety of methods to collect
the necessary data that needs to be analysed.
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