Organizational Performance Measurement and Management

Name: Organizational Performance Measurement and Management
Author: Khin Hnin Soe

Understand how to measure and manage organizational performance

Preview the first lesson free — get full access to all 6 lessons.

Course: On-Demand

(gentle music) Welcome to Organizational Performance Measurement and Management. Here, you'll learn the importance of evaluating organizational performance. How to choose performance metrics and implement organizational performance measurement systems. You'll also learn about the link between organizational performance and management and how management can benefit from the performance results. Evaluating organizational performance involves checking where the business is going against its strategic direction and understanding the businesses needs and employees needs. Let's say that you're part of the management team that evaluates organizational performance. The first step is to identify the organization's key stakeholders because they impact the organization in one way or another. Some businesses identify customers, employees, suppliers, communities, and shareholders as their stakeholders. After that, you can use these five questions devised by Dr. Graham Kenny, author and expert in business strategy and performance measurement to narrow down the list. Does the stakeholder have a fundamental impact on your organization's performance? Can you clearly identify what you want from the stakeholder? Is the relationship dynamic- that is do you want it to grow? Can you exist without or easily replace the stakeholder? And has the stakeholder already been identified through another relationship? Create a table and for each question, write your answer and check whether it's the same as the criteria. Once you've identified the relevant stakeholders, the evaluation process can focus on what's important for the organization and won't waste time and effort on measuring irrelevant performance metrics. This approach also compels managers to look at the big picture, incorporating all parties involved. Next, managers can evaluate the organizational performance by looking at the performance metrics for each stakeholder. When you set the performance metrics, think of what you give and what you expect to gain from them in return. For example, for customers as stakeholders, you can measure metrics related to the level of customer service and customer loyalty. For employees as stakeholders, you can measure metrics related to salary, benefits, and aspects of the desired company culture. Many organizations also use Kaplan and Norton's 'Balanced Scorecard Framework' to evaluate the performance. This framework helps managers look at their organization's performance from four different perspectives, financial, customers, internal business processes, and innovation and learning. It provides answers to four questions. How do customers see us? What must we Excel at? Can we continue to improve and create value? And are we achieving our financial goals? For each perspective, you can set goals and performance measures. The balanced scorecard approach is balanced because it helps managers measure financial results as well as monitor the non-financial results in areas such as building customer relationships, innovating products to retain the competitive advantage, employees' knowledge, skills, and abilities, and the internal business processes' efficiency and effectiveness.

Intermediate Provider : Khin Hnin Soe 6 Lessons · 22m in Arabic, German, English, Spanish, French, Portuguese, Urdu, Chinese

Course Description

Evaluating organizational performance involves checking where the business is going against its strategic direction and understanding both the needs of the business and its employees. Let’s say that you’re a part of the management team that must evaluate organizational performance. How will you go about measuring and managing your organizational performance? It’s important to identify your stakeholders first. Once you’ve identified the relevant stakeholders, the evaluation process can focus on what’s important for the organization and won’t waste time and effort on measuring irrelevant performance metrics. This approach also compels managers to look at the big picture incorporating all parties involved.

In this Organizational Performance Measurement and Management course, you’ll discover the importance of evaluating organizational performance. You’ll also learn how to choose performance metrics and implement organizational performance measurement systems. In addition, the lessons will go over the link between organizational performance and management, and how your company’s management can benefit from the performance results.

What You'll Learn

Evaluate organizational performance against the business's strategic direction
Identify the relevant stakeholders before beginning the evaluation process
Choose and implement appropriate performance indicators and metrics
Implement an organizational performance measurement system
Link organizational performance to management
Capitalize on organizational performance results to benefit your company's management

Key Takeaways

Evaluating organizational performance involves checking where the business is going against its strategic direction while understanding the needs of both the business and its employees.
Identifying the relevant stakeholders first allows the evaluation to focus on what is important and avoid wasting time and effort on irrelevant performance metrics.
This stakeholder-focused approach compels managers to look at the big picture and incorporate all parties involved.
There is a link between organizational performance and management, and a company's management can benefit from the performance results.

Frequently Asked Questions

What will I learn in this course?

You will discover the importance of evaluating organizational performance, learn how to choose performance metrics and implement organizational performance measurement systems, understand the link between organizational performance and management, and learn how to capitalize on the performance results.

Why is identifying stakeholders emphasized in this course?

Once you have identified the relevant stakeholders, the evaluation process can focus on what is important for the organization and avoid wasting time and effort on measuring irrelevant performance metrics, while compelling managers to look at the big picture incorporating all parties involved.

What topics are covered in the lessons?

The lessons cover evaluating organizational performance, choosing and implementing indicators and metrics, implementing an organizational performance measurement system, linking organizational performance to management, and benefitting from results, followed by a Test Your Knowledge section.

How can a company benefit from this course's approach?

The course goes over the link between organizational performance and management and explains how a company's management can benefit from the performance results.

Professional Certifications and Continuing Education Units (CEUs)

Society for Human Resource Management (SHRM®)

Professional Development Credits (PDCs): 0.5

Certification Program Categories:

Leadership & NavigationBusiness AcumenConsultationGlobal MindsetEthical PracticeRelationship ManagementAnalytical AptitudeCommunicationDiversity, Equity & Inclusion

KnowledgeCity is approved by SHRM as a Recertification General Provider to offer SHRM-CP or SHRM-SCP professional development credits (PDCs). By taking the courses approved by SHRM, KnowledgeCity can award SHRM Professional Development Credits (PDCs) for HR knowledge and competency programs related to the SHRM Body of Applied Skills and Knowledge™ (the SHRM BASK™).