A Note on Performance Measurement

6 Pages Posted: 16 Jan 2018

See all articles by Luann J. Lynch

Luann J. Lynch

University of Virginia - Darden School of Business

Abstract

Performance measurement is at the heart of management. How a manager's performance is measured strongly influences that manager's decisions and how that manager spends his or her time. If you tell the manager you are going to evaluate him or her based on some performance measure and you choose the right performance measure, you'll likely get what you want. But if you choose the wrong one, you can send things in the wrong direction. What gets measured gets attention.

Excerpt

UVA-C-2399

Dec. 8, 2017

A Note on Performance Measurement

Performance measurement is at the heart of management. How a manager's performance is measured strongly influences that manager's decisions and how that manager spends his or her time. If you tell the manager you are going to evaluate him or her based on some performance measure and you choose the right performance measure, you'll likely get what you want. But if you choose the wrong one, you can send things in the wrong direction. What gets measured gets attention.

Designing a Performance-Measurement System

The performance-measurement system and the performance measures chosen as part of that system must link to both the organization's strategy and the organizational structure. Prior to determining what performance measure to use to evaluate the performance of a manager or the business unit he or she manages, it is important to reflect on both of these.

. . .

Keywords: performance-measurement systems, designing incentive systems, goal congruence, key success factors, elements of performance measurement

Suggested Citation

Lynch, Luann J., A Note on Performance Measurement. Darden Case No. UVA-C-2399, Available at SSRN: https://ssrn.com/abstract=3101103

Luann J. Lynch (Contact Author)

University of Virginia - Darden School of Business ( email )

P.O. Box 6550
Charlottesville, VA 22906-6550
United States
434-924-4721 (Phone)
434-243-7677 (Fax)

HOME PAGE: http://www.darden.virginia.edu/faculty/lynch.htm

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