Bmgt Essay

653 Words3 Pages
Performance measurements are used by many organizations as a way of collecting and reporting information regarding the performance of an individual, group or organizations. There are many different types of performance measures that organizations use; some include human resources measures, financial measures, market position and product/ services measures. The goal when using performance measurement is to evaluate a process or strategy and determine whether the outcome is line with what the organization expected to achieve. Let’s discuss the usefulness of some common measurements and how the results of those measurements can be used organization today. Financial measurements can include profits/losses, returns on investments, and profit margins. Many organizations use these types of measurements as a way to provide a gauge for progress and overall financial health of your organization. This tool is normally used to conduct a quantitative analysis of information in a company’s financial statements .Financial measures are calculated by comparing the current year figures to previous years, other companies, the industry, or even the economy to judge the performance of the company. One example is the gross profit margin. This measures how well a company generates profit before general operating and inventory expenses are factored in. Also returns on Investments are a measurement tools that current and potential investors evaluate. This measurement determines how well an organization unitizes and invests their money. These measurements are important for several reasons. The first is to determine the health of the organization. The outcomes are also used by management to determine the success of particular sales, marketing and financing strategies. Also, the outcomes of these measurements are important for investors because the figures determine their choice to

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