Strengthening Performance Management Samples †MyAssignmenthelp.com

Question: Discuss about the Strengthening Performance Management. Answer: Strengthening Performance Management Learning points Theories and researches 1. KPI There are many KPI theories that are explained below: 1. Employee retention theory 2. Customer satisfaction theory 3. Customer churn rate theory 2. Scorecard Financial perspective: Sales Growth, Profit growth Customer perspective: Customer satisfaction, increased customer base Business Process perspective: Increased market share Learning and growth perspective: Business expansion, increased brand awareness and brand value 3. Performance Management in 2020 Goal setting theory Expectancy theory KPI theories: Employee retention theory: This theory explains how employee can be retained in the organisation. If employee turnover rate is high in a organisation then the company have some major issues that needed to be fixed. Employee retention theory helps in increasing the production and helps in decreasing the labour cost. The hiring of new customer due to poor employee management can affect the organisation. Employee retention theory helps in understanding the needs and problems of the customer and thus helps the organisation to work accordingly and retain the employee[1]. Customer satisfaction theory: Customer satisfaction is a vital aspect in the organisations success. The organisation should always look for various ways how they can satisfy their customer. The main aim of the organisation should be building the products according to the customers preference. Customer churn rate theory : This theory describes the percentage rate of customers who fail to make a repetitive purchase or have discontinued using their service. The customer churn rate can be obtained by the following formula: (No. of customer lost in a given period of time) / (Number of customers at the beginning of the time period) Business scorecard: The business scorecard is divided into four different perspectives[2]. The perspectives are: Financial perspective: It is expected that the company will gain a revenue increase of 30%. The profit off the organisation is also expected to increase by 10%. Customer perspective: The following KPI theories if applied properly in the organisation then it will help in increasing the customer satisfaction as well as will help ii will increase their customer base. Business process management: It is expected that it will help the organisation in increasing the market share. Learning and growth perspective: It is expected that the brand loyalty and brand awareness will also increase and it will help in business expansion. Performance management theory in 2020: Goal setting theory: This theory explains the establishment of individuals goals by the employee and its effectiveness in their own performance[3]. Expectancy theory: This theory defines that how the employees adjust to the situation. The individual alter their behaviour so that they can achieve the goals of the organisation[4]. References: Hoque, Zahirul. "20 years of studies on the balanced scorecard: trends, accomplishments, gaps and opportunities for future research."The British accounting review46.1 (2014): 33-59. Yin, Shen, et al. "An improved incremental learning approach for KPI prognosis of dynamic fuel cell system."IEEE transactions on cybernetics46.12 (2016): 3135-3144. Locke, Edwin A., and Gary P. Latham, eds.New developments in goal setting and task performance. Routledge, 2013. Kahneman, Daniel, and Amos Tversky. "Prospect theory: An analysis of decision under risk."Handbook of the fundamentals of financial decision making: Part I. 2013. 99-127.