Chapter 7

Measuring Business Performance


Organizational performance should never be evaluated in isolation. For example, what does a test mark of 40 really mean? Is it good or bad? No one can say unless they know the desired level of attainment and the maximum number of marks available. If we want to get more than half marks and the maximum possible mark is 40, then perfection has been achieved. On the other hand, if the maximum mark is 100, then we have been unsuccessful in our endeavor. The same applies to organizational performance. A number of predetermined performance targets enables the effectiveness of activities to be evaluated.

Various measurement criteria may be adopted, but the important performance indicators are those ...

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