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Script For Report

Performance measures are quantifiable metrics that allow managers to track and assess the status of a business. They serve as tools to optimize strategy and decision making. Cascading performance measures means setting relevant targets for business units that contribute to overall organizational goals. Performance is cascaded down through different levels so that employees understand how their work impacts higher targets. This ensures alignment across the organization and coordination between functions to effectively achieve shared objectives.

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Neriza Ponce
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172 views

Script For Report

Performance measures are quantifiable metrics that allow managers to track and assess the status of a business. They serve as tools to optimize strategy and decision making. Cascading performance measures means setting relevant targets for business units that contribute to overall organizational goals. Performance is cascaded down through different levels so that employees understand how their work impacts higher targets. This ensures alignment across the organization and coordination between functions to effectively achieve shared objectives.

Uploaded by

Neriza Ponce
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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What are performance measures?

 Set of quantifiable metrics taken from various sources that together with an appropriate
analytical process, allows the management of a business to track and assess the current status
of a specific business, project or process.
 This serve as tools that help managers optimize the interaction of high level strategy with day-
to-day decision making and organizational learning and to initiate improvements and to help
management focus resources on achieving the key targets and objectives.
 Provide information for management in relation to the past position, the future direction, if
something has gone wrong and when the business has achieved its goal and proactively manage
performance which also gives employees a clear understanding of what success looks like and
what the management is prioritizing.

The balanced scorecard is one of the most popular strategic performance management tools used by
many organizations to monitor business performance wherein focusing on the four perspectives
which are the Financial, Customer- , Internal Business Processes and Learning and Growth, by
which the model is widely used to choose measures and targets to track.

What is Cascading performance measure?

 It is a performance measures that every organization must perform upon achieving their targets
at the whole level. Also, it means that the target of the business unit involves a contribution to
the other unit.
 It is the process of setting the right performance measure for business units and teams to
measure that are relevant to the strategy and purpose of the organization.

Having the ability to design and monitor the right and appropriate performance metrics
capable of giving insights into the operations of the business.

Having the ability to design and monitor the right and appropriate performance metrics capable of
giving insights into the operations of the business gives an achievement of the organizational success
and an improved business performance by which the contribution of business units,
customers/customer agents, and products and services is important in order to achieve their targets of
the business in their performance measures at the whole organizational level.

Why is it that performance measures cascaded?

Reason of cascading the performance measures:

Each successive organizational level has different measures BUT the lower-level performance on one
measure contributes to higher-level performance at the next level.

 It is important to ensure the integration of performance targets so that no business units will
disadvantage by achieving the targets of the other.
In order to achieve the organization’s target, for example their goal is to get high volume of sales in
order to cover up their losses during pandemic. In the sales department, contribution of the sales team
within the salesperson to the other structure is expected for them to successfully achieve their target.
However, sometimes targets within business units may be in competition with each other. Like achieving
a target sales may cause difficulties in operation due to insufficient capacity of fulfilling the orders of
customers on time. If the measures are inconsistent and in competition with each other, individuals,
departments, cross functional teams or projects may be working towards different goals and targets,
and perhaps their performance measurement will also in different ways.

Its performance measures should cascade to see how teams are performing and also the alignment of
the business/organizational goals, coordination across different functions and projects, across different
individuals will effectively achieve. Any one manager should only focus in the performance measures
that they are responsible of.

It is for everyone in the organization would be able to see what have they do that fits into their teams
objectives which fits into the divisional objectives and which also fits into the organizations objectives
and strategy.

Use of Information technology

- Addresses the complexity of modern business and the variety of performance measures.

Using the information technology which can become critical in cost-effective performance management
system is one way to address the complexity of modern business and the variety of performance
measures.

Lower-level employees have fewer financial targets and more on non-financial targets

This is because their role is mainly concerned with the tasks such as production, distribution or
administration.

Example of cascading performance measures

The performance management in a public hospital


o In today’s cases public hospitals are populated due to the COVID-19 wherein hospitals may have
many performance targets, including the waiting lists for elective (non-urgent surgery) and
waiting times in the emergency department before admission to a hospital bed.
o targets are to minimize the infections and patients complaints. Many of the measures set by the
government in response to public expectation and election promises.
o To avoid the reality or perception that waiting lists and time being manipulated, many of those
performance measures are audited due to the need for public accountability.
o Health budgets has increased in which it is an outcome of economic conditions and spending
plans of the government across all sectors of public service.
o Role of the management and the governing bodies is to best allocate and manage the resources
within the fixed allocated budget to achieve their targeted performance which set by the
government.
o Hospital wide targets will be cascaded down to each department and to clinical directors within
each department. Individual clinicians are responsible for performance in the days when they
are on duty.
o So the director responsible for emergency department on a Sunday will be responsible for trying
to achieve the target for reducing the time between a patients arriving in an emergency and
being discharged or admitted to a ward for the ongoing treatment.
o Hospitals were facing difficulties of deciding whether to open or close ward and to reallocate to
where mostly needed. It is needed in daily basis to response the patients demand, but closing
the ward will caused a missed of performance targets.
o Problem of public service is that politically derived, not in the extent of their integration with
each other and the availability of their budget resources.

Reference:

https://www.skillmaker.edu.au/business-performance-measures/#:~:text=Business%20performance
%20measures%20are%20a,specific%20business%2C%20project%20or%20process.

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