PEOPLE.IDEAS.PERFORMANCE
73 This in turn reinforces the balanced scorecard approach, in emphasizing the requirement for organization wide understanding and performance measurement. This then becomes the basis for addressing and managing performance in financial terms as follows: ,QFRPH SURILW per product or service; per product or service group or cluster; per product or service range; per activity; in total; per employee: frontline staff; support staff; in total per employee group; per function; per activity; per department/division/section; per outlet; per location; per region; per country per square meter; per outlet; per location; per region; per country per hour/day/week/month/season/year; per chosen period. However, each of these points can only be assessed accurately, if they are taken in the fullest possible context; and this reinforces the need to address each area indicated above. It is also essential to recognize the influence that collective and individual patterns of behavior, and organization culture have on the totality of performance. Each of the calculations indicated above has to be carried out in relation to patterns of employment, organization structures, and the ways in which people behave in their different occupations, if realistic figures are to be produced. These figures, and the context in which they are produced, then form the basis on which performance can be assessed and evaluated in financial terms. &21&/86,216 The starting point for the need to understand the full complexities of performance measurement is addressing the critical organization and managerial question of maximizing and optimizing a return on 65% of operating and working capital. Understanding the full complexities of organizational, collective and individual behavior, on the one hand, and understanding the full complexities of organizational activities, operations and priorities, on the other hand, forms the basis of the expertise required (Fryzel, 2015). Clearly all organizations and their activities need targets, aims, objectives and priorities. The need for targets and objectives is driven by having to break work down into collective and individual activities, supported by technology, expertise and other resources. However, these targets, aims, objectives and priorities can only be established fully effectively, if there is a full knowledge and understanding of the operating and human environment. It remains true that the definition and management of performance required the need for attention to all aspects of performance: products, services, staff, processes, technology and IT. Again, however, this is only possible if context is first assessed. With this in mind, knowing and understanding: how people behave collectively and individually; the full context of organizational performance; the full complexities of effective organizational performance; the extent of managerial understanding and expertise in the area of organizational performance; is critical to overall effectiveness in this key area of organizational effectiveness. It is finally essential to note that many organizations managers that do continue to use one-dimensional and simplistic performance measures related to financial or productivity targets only, do so out of laziness or a fundamental lack of comprehension of the nature of organizational performance. For the future, developing approaches to defining, measuring and evaluating performance based on an understanding of culture and behavior, and a recognition of the great
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