Performance Measurement in Organizations

The goal of performance measurement is to provide a quantitative assessment and
measurement of the achievement of given tasks and set goals. The information that
performance measurement provides acts as feedback that helps to keep the strategic plan on
target. Apart from helping to improve performance of an organization, performance
measurement also helps an organization to account for funds that have been used in various
projects (Diana, 2014). This paper looks at some areas to measure when conducting
performance measurement. It also examines who to include in the measurement, when, and
how to carry out the measurement.
The two key areas that should be measured during performance measurement process
are finance and user satisfaction (Diana, 2014). For a public organization, it is important to
ensure that there is no wastage of public funds. Therefore, the performance measurement
should examine whether the funds are being used efficiently. In addition to finance, another
area that should be measured during performance measurement process is user satisfaction.
Information on user satisfaction will help the organization to know how well it is achieving
its goal of providing quality services to the public.
Performance measurement related to finances should be done through examination of
budget use. If projects consistently require more money than the budgeted amount or when an
organization’s projects cost far more than similar projects conducted by other organizations
then it shows that the organization is not using funds efficiently. As for user satisfaction,
performance measurement can be conducted using surveys of the users. Both surveys and
budget analysis to determine efficiency of use of funds can be done at any time. However,
they are best done at the completion of every project.

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The people to include in performance measurement are the public and employees of
the organization. The public will provide information about the effectiveness of the services
of the organization provides. Employees, on the other hand, will provide information on the
strengths and weaknesses of the organization’s internal processes that impact the ability of
the organization to achieve its strategic goals.

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References

Diana, M. U. (2014). Measuring Performance in The Public Sector: Between Necessity and
Difficulty. Studies in Business & Economics, 9(2).