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Organisational Performance. Performance Dimensions. Effectiveness How an organisation formulates and achieves its Objectives ‘Doing the right thing’ Efficiency How well you use your resources (inputs) to meet your Objectives Getting the lowest possible costs Using the minimum quantities - PowerPoint PPT Presentation
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Organisational Performance
Effectiveness How an organisation formulates and achieves its
Objectives ‘Doing the right thing’
Efficiency How well you use your resources (inputs) to meet
your Objectives Getting the lowest possible costs Using the minimum quantities ‘Doing things right’
Performance Dimensions
Used to evaluate the performance of management
Is management action effective?
Is management action efficient?
Describe how so.
Performance Dimensions
Provide precise and measureable data to evaluate performance and improvement. Must be precise
You don’t want fluffy data Must be measureable
If you can graph it, it’s great data Must relate to strategies and objectives of the
organisation
Performance Indicators
Profit or loss Market share Return on Investment (ROI) Level of Wastage Rate of injuries/workplace accidents Growth in productivity Expenditure on environmental improvement Results of a survey
Performance IndicatorsExamples
Performance Area Performance Indicator
Explanation
Competiveness Market Share The LSO with the highest market share may outperform competitors
Profitability Net Profit Comparing profit between years shows whether the LSO has improved its earning performance
Productivity Rate of productivity growth
A high level of productivity growth may indicate the company is performing more efficiently and effectively
Customer Satisfaction
Results of a customer satisfaction survey
A high level of positive survey results can indicate the LSO is performing well
Performance Indicators
Performance Area Performance Indicator
Explanation
Workplace Accidents Accident Data A large number of accidents may indicate the LSO’s processes need revising
Staff Satisfaction Level of Staff Turnover High staff turnover may indicate the LSO is not a place where staff wish to work, or is not performing efficiently
Quality Number of customer complaints
Number of Sales
A high number of customer complaints may indicate the quality of the company’s product or service is low
A large number of sales may indicate customers are happy with the quality of the product or service
Efficiency Level of Wastage A high level of wastage may indicate the LSO is not operating as efficiently as it could
Performance Indicators
Firstly, to evaluate our performance To Benchmark:
the process of comparing one's business processes and performance metrics to industry bests or best practices from other industries.
To seek out the international benchmark or Best Practice A method or technique that has consistently
shown results superior to those achieved with other means, and is used as a benchmark, best in class or leading practice
Performance IndicatorsWhy do we have PIs?
Can be expressed as financial or non-financial data
Apply to; Entire organisation Departments Teams Individuals
Employees should be involved in the creation of PIs Develops teamwork and motivation
‘They own it’
Performance Indicators
Specific and measureable
IMPORTANT!!!!
Jan Feb Mar Apr May Jun02468
10121416
22.35%287
Give a specific example!!!!!!!
Complete Test Yourself and do your Glossary Complete the Matching Worksheet
Activities