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Performance Management and KPIs in a Management Measurement System


Performance management plays critical roles in solving problems experienced by organizations. This emanates from firms with meager acquaintance and visibility regarding business-level metrics applied in reporting (Fluss, 2005). In addition, such businesses face problems arising from legal compliance thus requiring agile standards within speedily transforming markets. The process enhances the capacity for hands-on management and faster response to highly flexible client preferences and partner competencies (Spencer, 2004). Its aptitude to detect and evaluate trade situations lead to informed decision-making and progression in results. Other important merits include reduced perishable stock, real-time needs scheduling, an elevated finished merchandise turn rate, and decreased general inventory carrying expenses. Its application is useful in construction sites for trade controls, security entrance, character controls, records management, and procedure scheming and monitoring. KPIs constitute a critical management device with applications in measuring business performance and continuance. Additionally, they constitute metrics through which vital achievement factors are assessed (Kazmi, 2008). These also have close linkages with a firm’s vision. For any corporation to be operational, there must be proper recognition of KPIs. Through such analysis and identification, companies discover the combination of measures it shall apply in assessing the success level (Soon, 2010).

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“Intelligent Bots and Unicenters’ Neugents in Real Time Business Performance Management and Reporting”

Bot refers to an ellipsis for robots, a program that is useful in collection of information over the internet (Rahman & Bignall, 2001). Bots gather information about a certain subject matter and periodically update while CA Unicenters are a form of technology that provides management with precise, opportune, and objective reports on management performances. In addition, they provide performance deviation from the corporate target. Performance management is a dynamic process that requires timely reports so that procedures are drawn to guarantee that corporate goals are achieved. If bots were similar to CA Unicenters there would be greater enhancement in this field. First bots would be in a position to generate performance reports on real time basis thus employment of appropriate measures depending on performance (Rahman & Bignall, 2001). This means any entity can systematically evaluate performance and have reports generated immediately. Furthermore, reports generated would contain quantified assessments of performance, which would greatly assist in rewarding and reprimanding workers (Lurey & Raisinghani, 2001). Modern businesses prefer employees to work under functional teams. Therefore, if intelligent bots can operate like CA Neugents, there would be an overall improvement in team effectiveness. This is because performance reports generation is promptly and teams will have a prospect to evaluate results eventually leading to improvements of workforce capability. Consequently, it will enhance success in accomplishment of organizational goals.

Neugents have applications in analysis of situations in trade markets together with other technical areas. Major roles here include the forecast of transformations, proposal of methodologies of intervention, and capitalization on strengths to evade probable constraints (BCI, 1999). Intelligent bots similarly would be applied in the described environments to enhance business performance. Application of bots in such areas would involve institutions of procedures that assist the software to incorporate novel information. Consequently, application of such to current conditions minus manual programming would follow. Through this, intelligent bots may be helpful in discovery of novel dealing opportunities, fresh income sources, and automation of trade processes (Rahman & Bignall, 2001). Bots as Neugents could assist to create forecasts for upcoming system output and accessibility based on current situations. Bots also can enhance business reporting like Neugents through creation of proactive alerts for example a caution about emergent system flop. Additionally, bots would assist a company’s IT unit attain service standards through forecasting of system outages (BCI, 1999). Furthermore, like for Neugents, it would also limit the duration desired to establish thresh-hold based guidelines.

KPIs in a Management Measurement System a Professional Should Be Responsible for

Globalization era forces organizations to channel adequate resources to maintain competitive merit and meet client demand. Management systems currently undergo scheming and evaluation as noted in the market. Establishment of successful firms calls for systems and procedures for noting applicable data and competency to create performance metrics out of it (Mackay, Bititci & Maguire, 2008). Professionals ought to establish valid systems for checking and coordinating outputs of their firms. KPIs applied in any system emerge as basic core of its output. KPI constitute chosen deliverables regarded critical in assessing performance of entire company (Ittner, 2008). They make aims quantifiable, giving insights for personal or unit performances, and guide decision-making. Mostly, KPIs undergo assessments and dispersion in dashboards or scorecards (Eckerson, 2010). KPIs are of varied types and usually depend on the type of business in context. Management in particular environments call for synergy of available KPIs. Leading KPIs may assist to compel performance of an outcome measure. With existence of several KPIs, professionals ought to assess the most beneficial ones when applied (Nugent, 2003).

Performance and recompense assessment systems might be applicable in decision-making, constraint notification, and foreseeing. Problems though exist and failure to establish and authenticate causal business models may cause difficulty to professionals to relate progress in intangible resources to fiscal performance. KPIs that assess operate procedures generate competitive benefit through availing quality services. Additionally, professionals should adopt KPIs that safeguard, manage and support processes. Due to rising client preferences and competition, professionals should depend upon essentials of management systems architecture that are efficient for the organization. Professionals particularly in monitoring market situations might also employ sensitivity and scenario analyses (Nugent, 2003). Some scholars specify about 20 t0 30 KPIs (Champagne, 2011). Larger firms with great diversification might exceed the given limit and smaller ones a lower number. This suggestion is however context dependent. For example, any firm that replicates facilities within its units shall raise the number significantly. Professionals ought to consider consequences of metrics overload and only be responsible for ones they can manage effectively.

Applicability of Traditional Span of Control and Policies

Contemporary era conceptualizes facets affiliated to technology advance. The reliance of most KPIs on technology eliminates better proportions of traditional control practices. Currently, various standards are set including “Global Reporting Initiatives,” GRI that most companies follow as guidelines for sustainability in reporting (Swallow, 2009). Sustainability reporting concepts signify significant enhancements already existent to replace the traditional management practices. KPIs continue varying in applications as time advances with transforming markets and client interests (Bon, Jong, and Pieper, 2008). Furthermore, the influences from policies and global trends cause shifts in KPIs used by different organizations. Traditional management can therefore not adequately apply for KPIs. KIPs calls for integrity, morals, and worker capabilities, which must comply with contemporary society. Additionally, only effective modern monitoring procedures would gauge a firm’s internal systems. This activity requires modern systems for study and interpretation for it to be effective.

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Contemporary business world faces many challenges and competition marred with frequent changes partly due to emergence of novel technologies. Keen interests in performance management would assist several firms to sail through such tribulations. In addition, organizations should observe the centrality of KIPS in any management system to attain better results. Furthermore, additional research on the standard number of KIPS to be fully adopted for company effectiveness is necessary.


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Champagne, B. (2011). Too Many KPI’s?- Tips for Metrics Hoarders. Web.

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Kazmi, T. (2008). Strategic Management and Business Policy. New Delhi, Tata McGraw-Hill Education.

Lurey, J. & Raisinghani, M. (2001). An Empirical Study of Best Practices in Virtual Teams. Information & Management Vol. 38, Iss. 8, 523-544.

Mackay, D. Bititci, U. Maguire, C. & Ates, A. (2008). Delivering sustained performance through a structured business process approach to management. Measuring Business Excellence Vol. 12, Iss.1368-3047, 22-37.

Nugent, J. (2003). Plan to Win: Analytical and Operational Tools: Gaining Competitive Advantage. New York, NY: McGraw-Hill.

Rahman, S. & Bignall, R. (2001).Internet Commerce and Software Agents: Cases, Technologies, And Opportunities. Pennsylvania, PA: Idea Group Inc (IGI).

Soon, E. (2010). Performance Management System – The Key Performance Indicators. Web.

Spencer, D. (2004). IBM Software for E-Business on Demand: Business Transformation and the On Demand Software Infrastructure. Florida, Maximum Press.

Swallow, L. (2009). Green Business Practices for Dummies. New Jersey, NJ: Wiley Publishing, Inc.

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