Importance Of Performance Measurement

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In recent years, the Hong Kong government has put great emphasis on the provision of public services. Performance management has been pushed through all public sector levels, and organizations are required to measure and report their performance to improve public accountability and to become more efficient and effective. Performance measurement can be generally productive and help improve performance. However, there are rooms for improvement. If done poorly, it can be very costly (Power, 1997; Hood et al., 1998), and “not merely ineffective but harmful and indeed destructive” (Royal Statistical Society, 2003). Based on this broader context, this paper approaches the discussion in three general parts: Why has performance measurement
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Performance measurement can be defined as the process of quantifying the efficiency and effectiveness of past action (Neely, 1998). Effectiveness is compliance with customer requirements. Efficiency is means that how the organization use the resources to achieve the customers satisfaction levels. Performance measures should be chosen, implemented and monitored. The aim of performance measurement is to help clarify organization goals, directions and expectation. Help organizations learn how to accomplish goals more effectively. It helps monitor the operation of programs and to make continuous improvements, so they know the standards that are being attained. It also can identify where quality needs to be maintained or improvement made and indicators that reflect real value to service users. And, enable providers to learn and take effective action requires careful thought and regular…show more content…
The performance is slow, waste and not accurate. Before the measurement, organization cannot tell the difference when there is no comparison. Also, organization does not have any competition for the same service. Improvement is unnecessary in public sector. Performance does not affect the wage although you are the good employee of the company. However, this policy would make people to be lazy. People would have a low motivation for the work. The monitor system is lack of internal motivation to people. External monitor is needed for work process and outcome. After establish the performance measurement, the manager is easy to implement the concepts of management for results. There could achieve greater efficiency. In political aspect, government can ensure political and managerial accountability. It can enhance governance and popular sovereignty. Therefore, it is a devise to gather and balance the different expectations of stakeholders. Government officials can use the performance data to show that things are getting better. Managers can use it as a tool for reward and punishment and as a process of finding better ways of managing. It can be used to solve the problem of inconsistence of objectives between hierarchical
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