Applicability of Organizational Performance Indicators

Abstract

Today’s changing environmental challenges and accelerating technological advances over the past decade have presented companies with new challenges. There is an increasing emphasis on human resources, which can give companies a real competitive edge. At the same time, the focus is on the development of HR systems and their connection to other systems that determine how companies operate. Individual performance evaluation, in close connection with other HR functions, nowadays, in addition to evaluation, which may have a development or remuneration function, is linked to the performance of the organization. Accurately defining the latter and developing its measurement methodology, though not primarily as an HR function in most cases, is essential in the pursuit of effective operation. It is worth defining the indicators that may apply to a particular organizational unit and, at a higher level, to the whole company. The definition, implementation and measurement of indices and KPIs presupposes that the specified qualitative and quantitative indicators provide an appropriate framework for the evaluation of real performance. The performance of individuals determines the performance of an organizational unit, which in aggregate also predicts corporate-level performance.