Performance Measurement
Question
Which of the following is PRIMARILY achieved through performance measurement?
Answers
Explanations
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A. B. C. D.A.
Performance measurement is a key aspect of measuring the effectiveness and efficiency of an organization's operations. The primary objective of performance measurement is to help organizations achieve their goals and objectives by providing a basis for decision-making, identifying areas for improvement, and monitoring progress over time.
Out of the options given, each can be achieved to some extent through performance measurement. However, the primary objective of performance measurement varies based on the option.
A. Process improvement: Performance measurement can be used to identify areas of improvement in organizational processes, which can lead to enhanced efficiency, reduced costs, and improved quality. By measuring the performance of processes, an organization can identify areas of inefficiency or bottlenecks, and make changes to improve the overall effectiveness of the process.
B. Benefit realization: Performance measurement can also be used to track the benefits that are expected to be realized from a particular initiative, program or project. By measuring the progress towards achieving these benefits, an organization can identify areas where additional effort is required to achieve the desired results.
C. Cost efficiency: Performance measurement can also be used to identify opportunities for cost reduction. By measuring the costs associated with organizational processes, an organization can identify areas where costs are excessive and take steps to reduce them. By monitoring costs over time, an organization can also track progress towards achieving cost reduction targets.
D. Transparency: Performance measurement can help improve transparency by providing clear and objective data on organizational performance. This can help to build trust and credibility with stakeholders, including customers, investors, and regulators.
In summary, while performance measurement can be used to achieve all of the objectives listed, the primary objective of performance measurement may vary based on the context. For process improvement, the primary objective is to identify areas for improvement in organizational processes. For benefit realization, the primary objective is to track progress towards achieving expected benefits. For cost efficiency, the primary objective is to identify opportunities for cost reduction. For transparency, the primary objective is to provide clear and objective data on organizational performance.
