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Business
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| Number of pages / Number of words: |
6 / 1498 |
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Economic theory predicts that such performance management systems focus on the areas that are measured potentially at the expense of those areas which are really important but are difficult to measure or is not wanted to (for example the areas where the stakeholders of the indicators could not or did not want to agree on a way to measure them)...
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A service-providing organization will put priority on the indicators measuring the satisfaction of their customers. A production plant instead will focus on the metrics to use for optimizing the production process. In general, what is measured needs to be important for both the business and those directly or indirectly affected by what is measured – in other words “when something is measured but it isn’t important, it probably won’t get done†(Williamson, 2006)...
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