Performance management v measurement

Measurement is fine and will include both financial and nonfinancial performance measures.

Management implies judging whether performance is good enough and making appropriate adjustments. Mission gives very high level indications of what is meant by good performance. In practice, objectives (SMART) would probably be used to judge performance.

Yes. Objectives are definite targets that are set and if the organisation doesn’t hit them, management is needed.

There are not really any general issues – they depend on the circumstances. So if the company is moving to JiT the big risk will be that the system does not run smoothly and that the company runs out of components or can’t fulfill a customer order quickly enough.

Good performance is defined by what the organisation wants to do and often the balanced scorecard approach is useful for generating ideas.

Financial perspective: profits etc (there can be performance measures based on damaged stock, cost/unit, penalties for late delivery to customers)

Customer perspective: are we delivering goods of the right quality and quantity to the right place at the right time (or has JIT messed that up)?

Internal business perspective: lots of metrics about receiving goods on time, making goods efficiently, quality problems, perhaps making sure that there are always several suppliers fr each component to provide back-up).

Innovation and learning: metrics that measure the improvement in performance, or perhaps reduction in construction time, or better logistics.

Hi Gromit,

I was wondering if my reason regarding performance measurement vs management is correct to apply the terms in the scenario. Using building blocks model, dimensions are measurements and applying to the scenario you need to discuss the problems (or benefits) of being able to measure performance of employees for example (e.g. technical problems or structural problems)
Performance management is the whole system of the building block model from measuring the performance to setting targets of good performance to rewarding the good performance to achieve defined goals and objectives. Therefore, if you do not have identified objectives (CSF) then you cannot identify the KPIs and set targets which leads to rewards. Applying to the scenario, you need to discuss which part of the system is broken.
Am I missing anything that would relates to performance measurement vs management?

Thank you