'Some people consider that it is not possible for an organisation to exist without performance indicators' Discuss.

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Introduction

Organisational Accounting & Control; Coursework/Essay. Rajiv Y. Tanna 25/01/03 Dr. Derek E. Purdy University of Reading a) 'Some people consider that it is not possible for an organisation to exist without performance indicators' Discuss. b) 'Outline your own types of performance indicators that could be used in a school and indicate any problems with these'. a) I agree with the statement that it is not possible for an organisation to exist without performance indicators. According to Smith, performance indicators "facilitate estimation of the production function confronting the organisation, so that best practice can be identified and achievable targets set." According to Bartol and Martin, an organisation is "two or more persons engaged in a systematic effort to produce goods or services." Organising is "the process of allocating and arranging human and nonhuman resources so that plans can be carried out successfully". By making use of performance indicators, central management is therefore able to assess the productivity and efficiency of each division or department in an organisation. It is important to note that divisional profitability is a very important figure to look at in order to assess how effectively the firm has allocated and arranged resources. Emmanuel, Otley and Merchant point out, there are various other measures that account for a broader series of success criteria, e.g. ...read more.

Middle

By doing this, sales performances in each of these under-performing departments soared and this is arguably due to more effective leadership of these particular managers. Performance indicators are therefore vital to have, as managers will then be able to motivate staff to work towards goals and thus lead effectively. As can be seen from the above points, it is extremely hard to imagine an organisation from surviving without performance indicators. Planning, organising, leading and controlling all form the foundations to achieving effective management and the above points portray that at the end of the day, none of functions are achievable without having some form of performance measure, no matter what form of structure the organisation possesses. Every organisation, no matter how big or small, needs some sort of performance indicator to in order to plan, organise, lead and control the business if it is to carry on existing. b) There are a number of performance indicators that can be used in schools and we shall outline these below, as well as any associated problems. Grades at GCSE & A-level would be an example of a performance indicator as it generally indicates the different levels of ability each student possesses. ...read more.

Conclusion

I do not feel looking at all subject grades as a whole is fair and it would be more accurate to look at individual subjects. If certain performance indictors are made public, then this will increase competition between schools, e.g. league tables. On the one hand, we could argue that this competition will be healthy, as schools will realise that parents will, more than ever be choosing more actively where to send their child to school, thus will be pushing for continuous improvements in order to raise standards. On the other hand, while the popular schools will be expanding, unpopular ones may be forced to close down. Several of these unpopular schools may operate in uniquely disadvantaged areas and may be an important part of the local community. Additionally, most of the performance indicators above relate to examination competences, but as we have already discussed, these should not be the only measures of a child's ability as some schools may excel in other areas such as sport. Broadbent stresses the importance of realising that research has revealed much resistance to the idea that outputs of the schools can be measured. This belief is justified by appeals to the value set of education. The value set is claimed by teachers to be rooted in relationships and based on a desire to help individual pupils achieve their own unique best. ...read more.

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