How can mangers design clarity performance measures in organisations.docx - How can mangers design clarity performance measures in organisations Clarity

How can mangers design clarity performance measures in organisations.docx

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How can mangers design clarity performance measures in organisations? Clarity in the context of ‘good’ performance measurement Performance measurement is an emerging technique which is adopted by internal managers due to the rapid development of business environment. Performance measure system refers to a set of processes involving collection, analysis, and reporting of actual performance, comparing to expectation, evaluation and implementing corrective measures (Wolk et.al 2009). According to Smith and Kim (2015), these procedures are also defined as ‘cybernetic loops’. An important characteristic of performance measure is ‘Clarity’. Clarity can be defined as the measure or measure output is easy to understand without vagueness in interpretation (Smith & Kim 2015). A clarity performance measurement system is helpful for managers to achieve the target of organisation. This essay will describe the nature of clarity in performance measure and explain how clarity relates to performance measurement. The article will focus on how organisations can achieve clarity in designing performance measure in both financial and non-financial aspects. Furthermore, the essay will provide some real-world examples which achieve clarity criteria in performance measurement. Finally, this essay will describe two alternative solutions for managers to accomplish clarity performance measurement design. Clarity is a significant design standard in performance measurement. According to Smith and Kim (2015), an effective performance measurement system is helpful for managers to identify the most important aspects of business in a short term. There are various reasons why it is important for organisations to design a valid performance measure (Bourne et al. 2000). Firstly, performance measure can be adopted to formulate plans and implement strategies which provide specific goals or targets for employees to achieve. Senior managers can evaluate the performance of subsidiaries through performance measurement system. Motivating managers and employees are the third reason. Performance measure system can also support decision making. To
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