Efficient and Effective Operations Management: Role of Performance Indicators in Organizational Success - Assignment Example

Efficient and Effective Operations Management: Role of Performance Indicators in Organizational Success Contents 1.0 Introduction Daily activities carried out by organizations are mostly guided by the set missions and visions. In many cases, all staff members are usually taken through an induction process to equip them with the relevant information about organizations goals. The goals serve to align efforts and expertise of employees towards a common target (Porter 2012). Many organizations focus their attention and activities in ensuring that they remain successful by being competitive, both in the present environment and in future. Apart from non-profit organizations, the rest usually try as much as they can to increase their profit margins. Being able to increase profit margins has been one of the main points of interest among most shareholders (Moynihan 2012). Top managements of organizations have found themselves in the state of concentrating their attention towards profit maximization, as desired by shareholders. However there is one important aspect of management that need to be given attention by shareholders, management and other members of staff in an organization. Both non-profit and profit making organizations need to identify monitor and benchmark their operational activities. The progress of organizations can not just be measured in terms of profits made only but a thorough understanding of key performance factors has to be considered (Ngo 2013). Various assessment techniques need to be used by organizational management in determining the progress as well as impacts brought about by their operational activities. Managers ought to determine all relevant factors detailing the progress made by their organization (Işık 2013). Since the visions, missions and goals are aimed at outlining activities as well as offering guidelines on the desired actions to be undertaken by organizations, managers need to keep track of progress attained (Luo 2012). Therefore, this research proposal will seek to determine the need for organizational managers to embrace performance indicators in assessing the level of progress achieved (Popovič 2012). 1.1 Aim The aim of this research proposal is to determine the role of performance indicators on the organizations’ success. 1.2 Specific objectives To understand key performance indicators To identify characteristics of key performance indicators To determine the role of key performance indicators on the organizations’ progress 1.3 Research questions What are key performance indicators? What are the main characteristics of key performance indicators? What are the roles of key performance indicators on the success of the organizations? 1.4 Networking The main reason leading to selection of the role of performance indicators towards success of business an organization was as a result of interacting with managers from different organizations. Most of them were concerned about identifying approaches that could enable them monitor the progress registered by their organizations as well as gauging achievements that can be clearly presented to both internal and external clients. 2.0 Literature review Almost every successful business organizations apply performance indicators. The need for business organizations to apply performance indicators has been increasing with time (Elbashir 2011). Many research findings have documented the role and effectiveness of applying key performance indicators among business organizations. For instance, effective use of key performance indicators has been associated with timely provision of actionable metrics to both internal and external clients of an organization (Chen 2014). The information provided to clients is made accessible by use of understandable formats so as to promote efficiency and effectiveness of operations by both managers and other employees (Unger 2011). Many researchers have identified key performance indicators as those indicators that help in strategically reveal organization’s performance. Many management analysts have recommended the need to use between one to three key performances indicators for every organization’s objective. One of the reasons for limiting the maximum number of performance indicators is to enable selection of essential metrics towards success of the organization. Therefore, every department in an organization is expected to come up with performance indicators that are in line with the overall goals and objectives. Having been proved to worthy for implementation, a total of eight areas have been developed by management analysts to serve as a guideline when developing performance indicators. The first question seeks to find out the effectiveness and contribution of the performance indicators towards the set strategic goals. The second question asks if the performance indicators are quantifiable. The next step considered is to find out if the needed resources are available. Next is to ensure that the current performance, target and benchmarks are defined. Then, the most important area is to ensure that the indicators can be effectively used as a tool of management in a business organization. Also the highest plan of reporting has to be established in among business management team. In addition, there has to be an outline detailing how continuous improvement of activities will be carried out by both business management and junior members of staff. The final area of consideration is to ensure that all levels in the business organization develop a cascading plan (Pun 2012). 3.0 Discussion The research process to identify the key performance indicators, their characteristics as well as the role of key performance indicators on the organizations’ progress will be carried out by the use of appropriate data collection approaches. The research process will start by proper identification of both business organizations and individuals to be studied, by random sampling approach. The identified organizations and individuals will be notified in advance so as to get their consent as well as acceptance to participate in the research. The research process will commence following receiving confirmation to participate in the research process. Then the appropriate date will be set for the research as per availability of the business management and individuals. Since the appropriate time to conduct the research will depend on the subjects under study, a total of ten months will be appropriate to carry the exercise. Among research methods that will be used during the study include use of questionnaires, structured interview, observations and focus groups. In all the three data collections techniques, the area of interest will be to find appropriate answers to the three research questions as well as specific objectives. Thus the managers and other individuals to be examined will be given guidelines on how to identify and set key performance indicators for their organizations. The subjects will be given a maximum of six months for reviewing the progress being registered by their respective departments in an organization. There will be an option to monitor performance of the departments within the organizations after every three months. Then, they have to evaluate performance and progress registered by their organizations within the specified timelines. The response will be collected for analysis. Then primary data collected will be analysed and conclusion drawn. 4.0 Timetable Activity Time Selecting of research topic 1 week Proposal writing 2 weeks Designing of questionnaire and interview questions 1 week Identification of organizations and individuals to be studied as well as receiving their confirmation of participation 2 weeks Data collection 6 months Data analysis and conclusion 1 month Research report writing 2 weeks 5.0 Practical issues During the research process, ethical issues of both business organizations and individuals will be considered. For instance, all classified information provided will be treated given special consideration. All confidential information gathered will only be used during the analysis and not revealed, in honour of the sources’ privacy. 6.0 References Chen, X. P., Eberly, M. B., Chiang, T. J., Farh, J. L., & Cheng, B. S. 2014. Affective Trust in Chinese Leaders Linking Paternalistic Leadership to Employee Performance. Journal of Management, 40(3), 796-819. Elbashir, M. Z., Collier, P. A., & Sutton, S. G. 2011. The role of organizational absorptive capacity in strategic use of business intelligence to support integrated management control systems. The Accounting Review, 86(1), 155-184. Işık, Ö., Jones, M. C., & Sidorova, A. 2013. Business intelligence success: The roles of BI capabilities and decision environments. Information & Management, 50(1), 13-23. Luo, Y., Huang, Y., & Wang, S. L. 2012. Guanxi and organizational performance: a meta‐analysis. Management and Organization Review, 8(1), 139-172. Moynihan, D. P., Pandey, S. K., & Wright, B. E. 2012. Setting the table: How transformational leadership fosters performance information use. Journal of Public Administration Research and Theory, 22(1), 143-164. Ngo, L. V., & OCass, A. 2013. Innovation and business success: The mediating role of customer participation. Journal of Business Research, 66(8), 1134-1142. Popovič, A., Hackney, R., Coelho, P. S., & Jaklič, J. 2012. Towards business intelligence systems success: Effects of maturity and culture on analytical decision making. Decision Support Systems, 54(1), 729-739. Porter, L., & Tanner, S. (Eds.). 2012. Assessing business excellence. Routledge. Pun, K. I., Whar Si, Y., & Chan Pau, K. 2012. Key performance indicators for traffic intensive web-enabled business processes. Business Process Management Journal, 18(2), 250-283. Unger, J. M., Rauch, A., Frese, M., & Rosenbusch, N. 2011. Human capital and entrepreneurial success: A meta-analytical review. Journal of Business Venturing, 26(3), 341-358. Read More