Learnmanagement2 facebook link
Learnmanagement2 twitter link

Key Performance Indicators

Introduction

Key Performance Indicators (KPIs) are used by organisations to measure performance. Organisations will measure the performance of



How big is the area being measured through Key Performance Indicators (KPIs)?

The area under review can be small; For example an employer may measure the performance of an employee or it may be large such as the economic performance of a country.

What situations are Key Performance Indicators (KPIs) used in?

There are a variety of situations in which KPIs are used and each situation will dictate the type of KPI and level of detail.

What is the point of Key Performance Indicators(KPIs)?

A KPI shows how well, an activity that is important to an organisation, is being performed. Often KPIs will be made up of percentages and numbers as this helps to measure how well the activity is being performed. For example a KPI may state that the organisation must achieve zero complaints or a 20 percent increase in profits

Typical KPI Scenarios

KPI Set Up and Measurement Process

The activities labelled as KPIs may be:

To protect the quality of the KPI activity the measurer will often set quality measurers. These are designed to prevent the measuree from pursuing increased performance regardless of the effect on other areas such as health and safety, number of complaints or following legal requirements.

KPIs will often be linked to a system which rewards good performance and penalises under performance. The reward or penalty will depend on the sector that the KPI applies to.

Key Performance Indicators - KPI's

Some KPIs may disregard poor performance under certain circumstances. These are known as dispensations and will often be situations where the measuree could not control their performance for example a fire stopped the measuree attending their appointment.

Following a KPI review the measurer and measuree may draw up an action plan to remedy under performance or to increase good performance.

Conclusion

Some poor performing KPIs may be disregarded under certain circumstances; these are known as dispensations and will often be situations where the measuree could not control their performance for example a fire stopped the measuree attending their appointment.

Following a KPI review the measurer and measuree may draw up an action plan to remedy under performance or to increase good performance.

 

Studying Business Management visit www.learnmanagement2.com