Performance measurement system - Research Paper Example

(Franceschini, Galetto, & Maisano, 2007) A statistical model needs to be developed to get results of performance and a full picture can never be measured directly and sometimes observation is the only way of coming to a conclusion about performance and you do not get figures to assess with. The main aim behind a performance management system is to better the performance of an organization. Communicating better in an organization and having a trustful relationship with your peers and bosses is not something that is directly linked to bettering performance than perhaps training individuals but they are indirect measures that will in the long run help to get to the final purpose of the organization.

Some reasons to use PMS are to assess how an organization is performing; for this the managers in an organization need to determine what the organization was supposed to achieve. This means that the mission and vision statement of the organization should be clear. For this performance also, data is obtained from not only the observable performance but also the environmental hazards and also looking at the companies the organization had benchmarked itself against and seeing them as a comparative database.

Ideally, the organization needs to be using the best practice which is the most efficient and cost effective process even in regards of health, safety and environment. Benchmark could also be the same organizations past and present performance with the same or different processes used. PMS also helps to keep the organization’s functions under control by making sure that managers and subordinates are doing what they are supposed to be doing. Managers do not have the hierarchical control that they used to have before however, taking space into account, they still use certain measures to control their business.

Everyone must comply with these