INTRODUCTION TO A PERFORMANCE MEASUREMENT PROBLEM WITHIN SKY PLC

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INTRODUCTION TO A PERFORMANCE MEASUREMENT PROBLEM WITHIN SKY PLC

 

 

Name of Author

Name of the Class

Name of the Professor

Name of the School

Location of the School

Date

 

 

 

 

 

 

 

Performance measurement is the process of quantifying the efficiency and effectiveness of an action. Managers need to be able to assess and manage the organization’s performance (b6229, 2011,272). An organization’s performance measure will determine its priority and indicate its approach to stakeholders (b629,2011,272). Also, it is crucial in boosting the employees’ morale, in that where there is a performance measurement system, rewards and reprimands are in order.

The issue within Sky Inc is that there are too many key performance indicators which the managers struggle to understand. This can only be if the managers do not identify with the set of performance indicators used. These indicators are computer-generated, and to use them, one has to be conversant with how they work and their compatibility with their business. Assuming that’s the case at Sky, the managers can try to reset to traditional performance indicators such as past performance evaluation, revenue, costs, and profits and other nonfinancial indicators such as market share. Performance measurement is a continuous cycle; therefore, frequent updates and improvements need to be employed.

The organizational concept of responsibility centers links to responsibility accounting, which is concerned with establishing accountabilities that recognize managers as the controllability principle (Tattichi, 2010). One example of this is the revenue center. Here,  the budget holder is primarily responsible for revenue generation but has no concerns for costs, although they may have to control their cost budget, e.g., a sales manager. In Sky Inc., the sales department is a revenue center, and stakeholders and the finance department centrally control everything.

 

 

 

 

 

References

Taticchi, P. ed., 2010. Business performance measurement and management: new contexts, themes, and challenges. Springer Science & Business Media.