25 April, 2025
BusinessFinanceGeneral NewsNewsThought Leadership

How To Measure Management Performance

1,890 Comments06.9k

Managers, or team leaders, achieve results through others. Since they are accountable for their performance and the success of groups of workers, they can be measured on the basis of what their team achieves, as well as their responsibilities and the tasks they perform themselves.

Senior managers are often measured using business performance level measures. These include:

  • Achievement of strategic objectives
  • Sales revenue
  • Market share
  • Financial return
  • Quality
  • Quantity and volume
  • Efficiency / productivity
  • Value for money
  • Customer satisfaction
  • Employee satisfaction

Targets can be established for most of these items.

Business performance measures have frequently concentrated on financial results. Kaplan and Norton (1992) developed their ‘balanced scorecard’ approach as a way of encouraging a more rounded assessment of performance. Using a balanced scorecard, business performance could then be judged from the different perspectives of:

  • Shareholders
  • Customers
  • Internal response
  • Employees

Balanced scorecards can also be developed as a way of measuring individual performance in managerial roles such as…

Process Measures

Since the efficiency of processes affects overall performance, businesses can also measure processes in order to consider how to improve…

  • How will customers judge success?
  • What is the final output?
  • What are the key stages?
  • What output is required at each stage?
  • What activities can be measured?
  • What value is added by the process?

These process measures may also be adapted to assess individuals with responsibility for the process.

Typical Performance Measurement Problems

  • Adequate measurement information may not be easy to gather
    • Measurement may be difficult or not cost-effective
  • Quantitative measures may be subjective and the actual results open to interpretation
  • Qualitative measures may not be valid or reliable, especially when measures of behaviour are being used.
  • Performance ratings are the outcomes of social factors such as managers performance judgements, or political judgements in relation the business culture.

A Checklist of Good Practice

  • Ensure measures used reflect overall business priorities
  • Balance short and long term outcomes
  • Ensure measures are clearly understood by employees
  • Focus on what’s important rather than what’s easy to measure
  • Use to correct and improve not to blame
  • Continually review the measures

And finally, remember that performance measurement is used to…

  • Assess achievement of objective
  • Give feedback to an individual or group
  • Identify problems and areas for improvement
  • Identify training and development needs
  • Determine performance pay
  • Identify potential
  • Validate selection decisions
  • Generate standards for benchmark comparisons

Business Talk

View all posts
Share
In Your Business Are You Just Being Busy vs Being Effective? Previous post

Related Articles

Business

Craner & Kirkman Scales Up with New HQ Following £500K Turnover Under Founder Tom Singleton
BusinessHospitalityRetail

Switch Roles: The New Platform Putting Retail Recruitment Back in Retailers’ Hands
Business

Verifi Mortgages Challenges Credit Stereotypes with Real-World Success

Trump’s Aluminium Tariff Forces £120,000 Budget Rise for Community Infrastructure Project

1,890 Comments

  2. binance

    Thank you for your sharing. I am worried that I lack creative ideas. It is your article that makes me full of hope. Thank you. But, I have a question, can you help me?

  1426. DavidSoush

    balloon казино официальный сайт balloon game Игра РЅР° деньги — это ваше развлечение.

  1431. Martyzed

    Казино — это место для больших выигрышей.: balloon game – balloon казино демо

  1441. JesseBup

    Играйте РІ Ballon Рё наслаждайтесь процессом.: balloon игра – balloon казино

  1443. JesseBup

    Удача всегда СЂСЏРґРѕРј, РєРѕРіРґР° играешь.: balloon game – balloon казино

  1446. JosephSpida

    Играйте РІ Ballon Рё наслаждайтесь процессом.: balloon game – balloon казино играть

  1451. Martyzed

    Играйте РїРѕ СЃРІРѕРёРј правилам РЅР° автомате.: balloon казино – balloon казино играть

  1456. DavidSoush

    balloon казино играть balloon игра Автоматы Ballon поражают своей красочностью.

  1457. JosephSpida

    Автомат Ballon — идеальный СЃРїРѕСЃРѕР± расслабиться.: balloon игра – balloon казино играть

  1795. Your code of destiny

    I’m extremely impressed together with your writing abilities and also with the layout to your weblog. Is that this a paid theme or did you modify it your self? Anyway stay up the nice quality writing, it is uncommon to look a great blog like this one today!

Leave a Reply

Your email address will not be published. Required fields are marked *