To ensure that the organizations goals and objectives are achieved, organizations are now using performance measurement tools to achieve them. To improve the process of production, to evaluate and control it is a good idea to have performance measurements in place. Performance measurements also can be useful in making decisions and judgments. An organization will also be able used to compare the performance of departments, teams and, individuals.
Any measurement systems purpose is basically to provide feedback regarding the organizations goals, and it also help the organization attain set goals more effective. The feedback data that the organization receives will let the organizations know where it is, how well it is doing and what path it is taking. Increased motivation is another potential means by which performance measurement can enhance effectiveness. For the motivational benefits of performance measurement to be realized, a performance measurement system must include consequences.  A performance measurement system can help to inform managers about the behavior of employees. Employees might, therefore, work harder to obtain the rewards administered by managers or work harder to avoid the negative consequences of low performance. Modest motivational impacts are reported in surveys of government officials. In U.S. municipalities, the motivational benefits of performance measurement are reported to be substantial by 9.6% of respondents and moderate by 33.3% of them.  These results are consistent with a survey of U.S. counties in which 31.5 percent of respondents agree or strongly agree with the statement that performance measurement increased commitment to excellence.  The reviewed studies indicate benefits in focus or motivation for between 32 and 68 percent of respondents. These findings suggest other mechanisms, in addition to learning, by which performance measurement could enhance...
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