Performance measurement
Performance measurement, Compensation and
Multinational Considerations
Mukhammadbobir 1401617
Faruddin 1401625
Louis Awu 14016
Performance Measurement is generally defined as regular measurement of outcomes and results, which generates reliable data on the effectiveness and efficiency of programs. Performance measures quantitatively tell us something important about our products, services, and the processes that produce them. They are a tool to help us understand, manage, and improve what our organizations do. Performance measures let us know:
How well we are doing
If our processes are in statistical control
If we are meeting our goals
If and where improvements are necessary
If our customers are satisfied
Present in the balance storecard:
Financial
Nonfinancial
Firms uses the following measures in its balanced scorecard:
1. Financial perspective—stock price, net income, return on sales, return on investment, and economic value added
2. Customer perspective—market share in different geographic locations, customer satisfaction, and average number of repeat visits
3. Internal-business-process perspective—customer-service time for making reservations, for check-in, and in restaurants; cleanliness of hotel and room, quality of room service; time taken to clean rooms; quality of restaurant experience; number of new services provided to customers (fax, wireless Internet, video games); time taken to plan and build new hotels
4. Learning-and-growth perspective—employee education and skill levels, employee satisfaction, employee turnover, hours of employee training, and informationsystem availability
Designing accounting-based performance measures requires several steps:
Step 1: Choose Performance Measures That Align with Top Management’s Financial
Goals
Step 2: Choose the Details of Each Performance Measure in Step 1
Step 3: Choose a Target Level of Performance and Feedback Mechanism for Each
Performance Measure in Step 1.
Accounting-Based Measures
Return
Multinational Considerations
Mukhammadbobir 1401617
Faruddin 1401625
Louis Awu 14016
Performance Measurement is generally defined as regular measurement of outcomes and results, which generates reliable data on the effectiveness and efficiency of programs. Performance measures quantitatively tell us something important about our products, services, and the processes that produce them. They are a tool to help us understand, manage, and improve what our organizations do. Performance measures let us know:
How well we are doing
If our processes are in statistical control
If we are meeting our goals
If and where improvements are necessary
If our customers are satisfied
Present in the balance storecard:
Financial
Nonfinancial
Firms uses the following measures in its balanced scorecard:
1. Financial perspective—stock price, net income, return on sales, return on investment, and economic value added
2. Customer perspective—market share in different geographic locations, customer satisfaction, and average number of repeat visits
3. Internal-business-process perspective—customer-service time for making reservations, for check-in, and in restaurants; cleanliness of hotel and room, quality of room service; time taken to clean rooms; quality of restaurant experience; number of new services provided to customers (fax, wireless Internet, video games); time taken to plan and build new hotels
4. Learning-and-growth perspective—employee education and skill levels, employee satisfaction, employee turnover, hours of employee training, and informationsystem availability
Designing accounting-based performance measures requires several steps:
Step 1: Choose Performance Measures That Align with Top Management’s Financial
Goals
Step 2: Choose the Details of Each Performance Measure in Step 1
Step 3: Choose a Target Level of Performance and Feedback Mechanism for Each
Performance Measure in Step 1.
Accounting-Based Measures
Return