Performance Measurement and Management Assignment

Performance Measurement and Management - Assignment Example This is also ensures that transparency is achieved because stakeholders are informed on the choices the organization intends to take. In addition, it assists an organization to monitor its progress towards its set objectives and standards of performance (Lichiello and Turnock, 2010). In addition, Myer (2005) highlights that performance management is the coordination of activities, which ensures that organizational goals are effectively achieved. It is also the use of performance measures and standards by an organization to ensure that the desired results are met Lichiello and Turnluck, 2010). In performance management, an organization matches its resources, systems and workforce towards desired objectives. Employees, organizations departments and processes in the organization can be the basis of performance management (Lichiello and Turnock, 2010). Myer (2005) also highlights that the benefits of performance management include; reduced costs by decreasing the time of achieving goals and reducing project overruns, motivation of employees by using incentive plans for goals achieved, improved engagement and transparency, and lastly, improved control of organization activities through proper data relationships. This paper will highlight and describe in detail the va rious performance measures that can be used by Allulite Windows and Joinery in measuring performance, and it will emphasize on the balanced score card approach and why it is favorable for the company than any other methods. In general, the metrics of measuring performance in an organization can be broadly classified into financial and nonfinancial measures. Some of the financial measures include the Return on Investment (ROI), Residual income (RI) and discounted cash flow methods such as the NPV method. On the other hand, the nonfinancial performance measures include