[BUS 322] - Final Exam Guide - Everything you need to know! (24 pages long)
To implement the strategy that needs a performance measurement. A mechanism that improves the implementation of strategy in an organization successfully. Ma(cid:374)agers (cid:374)eed to fi(cid:374)d a set of (cid:373)easures that (cid:271)est represe(cid:374)t the fir(cid:373)"s strategy (key performance indicators) Accounting or financial performance is the most common measure to evaluate performance. Advantages: accounting profiles and returns can be measured on a timely basis, relatively precisely and objectively, which allows employees to react positively, the short term measures keep employees on track. Disadvantages: encourage managers to short-term actions that are not i(cid:374) the fir(cid:373)"s lo(cid:374)g-term interest, managers avoid long-term investment, in order to obtain short-term profit, managers slack the budget and manipulate data. Other measures of performance are required: should be capable of measuring multiple attributes of an organization. Cross functions: operates with integrated business processes that cut across traditional business functions, combines expertise with speed, efficiency, and quality of integrated business processes.