[SHOWTOGROUPS="10"]BPP states that students MUST be able to calculate performance indicators and apply our analysis to the scenario/question.
Performance measurement aims to establish how well something or somebody is performing in relation to a plan. It is divided into two (2) groups:-
1 Financial performance indicators; and
2 Non-financial performance indicators
Factors to consider
Measurement needs resources
Measurement must be measures in relation to something
Measurement must be relevant
Measurement of short and long-term achievement
Measurement should be as fair as possible
A variety of measures should be used eg The balanced scorecard approach
Realistic estimates for measures to be employed
Measurement needs responses
Once suitable performance measures have been selected they must be monitored on a regular basis.
There is little point in devoting considerable resources to measuring market share for example if an increase is not one of the organisation's objectives.[/SHOWTOGROUPS]
I hope that this information helps you guys with the topic of performance measurement.
Performance Measurement
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