- Published: November 17, 2021
- Updated: November 17, 2021
- University / College: The University of Queensland
- Language: English
- Downloads: 6
Hronec(1993), define performance measures as the vital signs of the organization, which “ quantify how well the activities within a process or the outputs of aprocess achieve a specified goal”. Neely et al. went on to propose definitionsof performance measurement, a performance measure and a performance measurementsystem. These were: Performance measurement canbe defined as the process of quantifying the efficiency and effectiveness ofaction.
“ A performance measure canbe defined as a metric used to quantify the efficiency and/or effectiveness ofaction.” A performance measurementsystem can be defined as the set of metrics used to quantify both theefficiency and effectiveness of actions.” Effectiveperformance measures can let us know, how well we are doing, if we are meetingour goals, if our customers are satisfied, if our processes are in statisticalcontrol, and if and where improvements are necessary.
Cheunget al. (2004), developed a web-based construction project performancemonitoring system to help project managers monitor and assess projectperformance. Performancemeasurements are objective quantitative indicators that are designed to trackparticular states of performance such as productivity, effectiveness, efficiency, customer satisfaction, quality and cost. Performancemeasurement is the regular collecting and reporting information about theinputs, efficiency (Takim et al, 2003). The measurement of organizationalperformance is different from the measurement of project performance (Lin andShen, 2007). Neelyet al. (2002) defined performance measurement as the process of quantifying theefficiency and effectiveness of past action.
Bititci et al. (1997) describeperformance management “ is seen as a closed loop control system which deployspolicy and strategy, and obtain feedback from various levels in order to managethe performance of the system. Performancemeasurement in the construction industry tends to focus on partial performanceat an activity or project level rather than the overall performance of the firm(Lin 2007).