Planning and Measuring Performances

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Planning and Measuring Performance
Sabir Farooqi
MGT/521
February 27, 2013
Susan Jolley

Abstract

Organizational evaluation or assessment measures, compares, and analyze the coherence between results and specific objectives. Evaluating goals of a global operation with a unified approach is challenging, and demands for identifying significant factors in the performance and growth of the company. These factors are carefully thought and practiced before they become critical contributors in an organizational performance. Contemporary organizations follow diversified growth parameters for success. These have varied degrees of significance in individual market segments. There are different standards and tools to evaluate their performances and adjusting them to optimize expected results.

Planning and Measuring Performance
Part 1
The most important purpose of organizational evaluation is to generate reliable information, which then becomes a valuable experience and is useful for adjusting planning, establishing priorities, and resource allocation. During this whole process specific results are analyzed and compared with goals and objectives and then are adjusted with predetermined standards. Improvement in organizational performance can occur when there is some way of measuring performance, which creates a link between decisions and organizational goals. FedEx Corporation is a global operation with presence in more than 220 countries in the world. Growth plans and goals are customized in each market segment but have their universal significance at the corporate level. Strategic and operation plans are designed for optimized results and achievements. These plans are evaluated against the required standards and then adjusted for desired results. There are number of ways to evaluate the performance at FedEx but three suggested measuring standards are Balance scorecard

This is a way of appraising organizational performance taking into account more than one performance perspective; financial, customer, internal processes, and people/innovation/growth. While evaluating these independent areas, management still looks for the most significant performance factor in the organization, which helps them in pursuing the objective defined at the planning stage. Each area has varied degree of influence in the company work sheet. Identification of its relative importance and allocating resources is a defining principle of balancing scorecard. Corporate governance

Another strategic goal for FedEx is to grow profitable revenues and increase dividends for its shareholders. Corporate governance provides a system that governs organizations while protecting the interests of shareholders and also providing them candid financial audit results. FedEx Corporation has a board of directors that looks after the financial and operational performance of the organization while keeping the financial goals of the company in perspective. Budgeting

Having a formal and structured budgeting process is the foundation for good business management, growth and development. Similar to our personal finances, planning and organizing resources through budgeting is cornerstone of any business development. Budgeting is a financial standard of performance, which allocates funds in across the operational span of an organization. This is designed and formulated based on the needs of growth and control. Financial figures are evaluated against the budgeting standards and then reviewed for future planning. Working on performance standards and evaluation, balance scorecard module provides the most useful tool for comparing and taking managerial actions. FedEx Corporation is following this approach in pursuing long term goals and implementing operational plans. Their growth plan covers all four areas explained in the module. Finance

1. Achieving $1.7 billion annual profit per year by the year ending in 2016 2. 10% or plus operating margin per year
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