Performance Management aims to establish how well something or somebody is doing in relation to a plan. Explain TWO methods used in measuring performance and identify FOUR qualities of a good performance measurement criteria. (8 marks)
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Methods used in measuring performance:
- Financial Performance: analyse profitability, liquidity and risk. Financial Indicators include Profit, Revenue, Costs, Share Price and cash flow.
- Non-Financial Performance: This can usefully be applied to employees and product/service quality. Non-Financial Indicators may include Quality of Service, Measures of customer satisfaction, Lateness.
Qualities of Good Performance Measurement
