Introduction - Key Issues and Strategies in Performance Management
The performance measurement systems have included several issues and challenges at the current time. Performance measurement issues have to be addressed and the strategic management of those issues has to be identified in this manner. The strategies to overcome those challenges need to focus on the performance management system. In the recent phenomenon, the purposes of this balanced scorecard approach have to be addressed and analyzed in this manner.
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According to Nižeti? et al. (2019), the cost management system in healthcare has been recognized as a costly and complex system. The health center requires maintaining a high level of privacy and security in its data collection. In this sense, problems arise in disclosing personal information. On the other hand, a consensus among regulators and healthcare providers has been required. The issues of patient information, destruction and modification of the stored data, security mechanisms, and protection of data have been found in the performance measurement system (Nižeti? et al. 2019). The process of blockchain has to be used for money-related exchange related to financial instruction and centralized authority.
Figure 1: System architecture
These blockchain technologies need to be utilized to protect transactions of medical records, smart contracts, insurance billing, etc. Those are the challenges and the accounts have chosen this blockchain strategy to overcome this kind of data security and protection issues.
Challenges of data completeness
Himanen, et al. (2019) explain that problems of data completeness have been found in the material sciences. It has been assessed and addressed that all the related data has collected new knowledge and resources that have been extracted from the materials dataset. In this case, the material dataset has been complex or big in terms of traditional human reason. The issues or challenges have been generated in the application by multiple factors, national funding, open science movement, use of information technologies, etc (Himanen, et al.2019). On the other hand, there are several challenges that have also been prevalent in nature such as data veracity, data longevity, limitation among academic effort and industrial interests, standardization and integration of conceptual and experimental data, etc.
With the aspect of Aad et al. (2020), the operation of data quality has been focused on and analyzed in the performance measurement system. In this case, in the collected data, the issues of the transient detector have been marked in this manner. In the strategic management system, the time of the collected data has been critically analyzed in this case. To overcome those challenges all the related data can be collected and gathered from each and every detector subsystem. On the other hand, the recorded data should be monitored at all times following automated procedures. In this way, the matter detector operation, hardware, and software experts would be able to improve the prevention, identification, and treatment of their data quality (Aad et al. 2020). As per these scholars, several issues have been found in the data quality and the stages that need to be followed to improve the data quality.
Issues on performance measurement control system
Based on the perception of Ferreira and Otley, (2009), the issues or challenges regarding performance management and the performance measurement controlling systems have been faced with intertwined complexity in the parietal and simplified settings. In this case, the process of simplification has been followed to make the process easier to understand. But, in this field, the challenges of conflicting findings and the price of the increasing ambiguity have been focused on in this manner (Ferreira and Otley, 2009). To mitigate this kind of challenge the management needs to give more emphasis on the entire operation and structural framework management. In this process, the matter of issues can be highly criticized and analyzed with holistic approaches to performance measurement issues. (given)
Purposes of performance measurement system
Relationship between risk management and business performances
According to Shad et al. (2019), performance measurement has been used in assessing risk management and making relationships among business performances. This part has given more emphasis on sustainability practices and making the relationship between the implementation of risk management and business performance. Business performance has been recognized as a technique of value-addition measurement in the context of the economic value-addition process. The business initiatives, sustainable strategies, and corporate business implementation strategies have been addressed and developed by the perception of performance measurement strategies in the business industry (Shad et al. 2019). On the other hand, in analyzing proper performance management the business industry needs to focus on sustainable reporting and implementation of the data stream. In this case, the financial losses, profit, market share, and market performance in the global market phenomenon have been demonstrated with the help of performance measurement systems.
Figure 3: Risk management by the performance measurement system
Supply chain management
Based on Federico et al. (2021), the performance measurement system has been used in supply chain management in the industry. The key focus of this injury is to give more emphasis on the use of disruptive tools and technologies with effective impact on the supply chain. There are several technologies that have been applied with respect to supply chain management such as virtual reality, 3D-printing, cloud technologies, identification of radio frequency, simulation, analytics of big data, automatic identification, business intelligence, and nanotechnology, etc (Frederico et al. 2021).
Figure 4: Supply chain management
Following this process, technical and non-technical issues, infrastructural capabilities, and employment collaboration can be achieved in the context of supply chain management through a performance measurement system (Frederico et al. 2021).
Use of renewable energy in sustainable development
With the aspect of Hu et al. (2020), the application of performance management in a trifunctional system in integration of solar thermal, sky cooling solar PV has been discussed and demonstrated with the aspect of performance measurement strategies. In those sectors, renewable energies have been used in terms of sustainable development. In this way, the performance management needs to illustrate the operating temperature, wastage of what, and solution of the EV panel in the trifunctional system. On the other hand, the radiative cooling factor indicates green and sustainable energies in the context of harvesting technologies (Hu et al. 2020). This process focuses on the “atmospheric window” as the path of heat transfer from earthbound to cold space. The performance management in developing cold air and making a cool environment in terms of eco-friendly and passive sense has analyzed this supply-cooling factor.
Figure 5: Performance evaluation on Solar thermal panel
Accounting and accountability changes
Description of Gross et al. (2020) explain that changes in accountability in the knowledge-intensive organization have been discussed and demonstrated in this manner. With the help of the performance system, the previous accounting has been collected and gathered for further analysis in terms of knowledge-intensive public organizations. This process can be able to focus on customer performance in the global market (Gross et al. 2020). At the current time, the population has been increasing in a large way. In this case, the public sector has been facing capacity and financial challenges. Prompting healthcare and public services is in making effectiveness and efficiency in this manner. The sectors of performance and accounting management, political and autonomy pressure, loose coupling, and matters of accounting have been addressed and demonstrated with the help of perforce management systems in various business organizations.
Several strategies to overcome performance measurement issues
Evolution of Smart Manufacturing System
Based on the perception of Kamble et al. (2020), the use of smart manufacturing strategies has been illustrated and focused on as an improving perforce measurement system. It has several advantages in the business industry. There are various technologies that have been applied in the context of SMS such as automation, artificial intelligence, cyber-physical processes, semi-autonomous systems, etc. (Kamble et al. 2020). With this aspect of SMS, the process of auto-component manufacturing has been criticized in this manner.
Figure 6: Smart manufacturing measurement system
As per the figure, the concept of SMS has a strong effect on performance dimensions like cost quality, time measurement, flexibility, integration, real-time prognosis and diagnosis, optimized productivity, ecological and social sustainability, and computing, etc.
Role of small wins in evaluating progress
According to Termeer, and Dewulf, (2019), the concept of small wins has been concentrated to tackle the wicked policy in making solutions and additional effort in this case. The perception of this small wins system has been included with three systems such as: valuing and identifying small wins, analyzing effective propelling mechanisms for the accumulation of transformative change, and finally organizing all the feedback in terms of making policy processes for innovative small wins.
Figure 7: Indicators of propelling mechanism
In this process, the evaluation paradox might increase in reason with two unproductive risks like overestimation and paralysis (Termeer, and Dewulf, 2019).
System dynamic model
With the perception of Fitzgerald, 2007, corruption has been found in a broader aspect. In this case, to introduce transparency this model has been used and described in this manner. As per this model, the focus has been created on several fields like judiciary and police, bunnies sector, corruption in the international organization, etc. The SD methodology has played a significant role which has been suited for making the dynamic environment interact with human behavior (Fitzgerald, 2007).
Figure 8: Indicators of propelling mechanism
This SD model has been giving more concentration on the connection of feedback among their employees, customers, managers, and other actors. On the other hand, this model has a focus on anti-hail public services, the process of internal procurement, key performance indicators, etc.
Balanced scorecard process
Accomplishments, opportunities, and trend of balanced scorecard
According to Hoque, 2014, the accomplishments, opportunities, and trends of a balanced scorecard have been critically discussed and analyzed in the performance management process. As per this scholar, a framework of performed measurement has been created which is considered as the balanced scorecard (Hoque, 2014). This balanced scorecard has been concentrating on accounting, management, and entire business development.
Balanced scorecard for performance management
With the aspect of Kaplan and Norton, 2007, the balanced scorecard has been used in most business companies. This process has a positive impact on financial targeting, financial measurement, and strategic implementation (Kaplan and Norton, 2007). It has been recognized as the sole indicator in performance management. Following this balanced scorecard, the vision strategies have to be built in a business organization.
Figure 9: Vision and strategies for a balanced scorecard
Balanced scorecard on the banking sector
Summarizing the concept of Dincer et al. (2020), the issues and advanced outcomes in the banking sector have been constituted in terms of investment decisions. Most business organizations have been favoring loans from the banking sector (Dincer et al. 2020). This balanced scorecard has been effective for the calculation budget of total assets, return on equity, “return on investment”, “non-performing loans” etc.
Digital servitization framework
According to Manser Payne et al. (2021), the process of digital servitization has been used as the ideal framework for performance measurement systems. In the current phenomenon, most of the industry has broadly used Artificial Intelligence and digitization processes (Manser Payne et al. 2021). This framework has been aimed at changing perception, value perception, firm performance, and customer engagement to enhance the financial ecosystem services.
Conclusion
In this assignment, the role of performance management has been discussed and analyzed. Even, the challenges of performance management in the performance management have also been focused on in this case. On the other hand, the role of a balanced scorecard has been illustrated in this case. In this process, the challenges of the performance measurement and the new strategies to overcome those challenges by the accountants need to be focused on in this manner.
Reference list
Journals
Aad, G., Abbott, B., Abbott, D.C., Ambroz, L., Artoni, G., Backes, M., Balunas, W.K., Barr, A.J., Beresford, L., Bortoletto, D. and Cooper-Sarkar, A.M., 2020. ATLAS data quality operations and performance for 2015–2018 data-taking. ;Journal of Instrumentation, ;15(04).
Dincer, H., Hac?o?lu, Ü. and Yüksel, S., 2020. Balanced scorecard-based performance assessment of the Turkish banking sector with the Analytic Network Process (ANP). ; International Journal of Decision Sciences & Applications.
Ferreira, A. and Otley, D. (2009). The design and use of performance management systems: An extended framework for analysis. Vol 20 (4), pp.263-282
Fitzgerald, L (2007) in Performance measurement in ed Hopper,T. ’ 3rd edition, pp 223-241 FT/Prentice Hall: London
Frederico, G.F., Garza-Reyes, J.A., Kumar, A. and Kumar, V., 2021. Performance measurement for supply chains in the Industry 4.0 era: a balanced scorecard approach. ;International journal of productivity and performance management, ;70(4), pp.789-807.
Grossi, G., Kallio, K.M., Sargiacomo, M. and Skoog, M., 2020. Accounting, performance management systems, and accountability changes in knowledge-intensive public organizations: a literature review and research agenda. ;Accounting, Auditing & Accountability Journal, ;33(1), pp.256-280.
Himanen, L., Geurts, A., Foster, A.S. and Rinke, P., 2019. Data?driven materials science: status, challenges, and perspectives. ;Advanced Science, ;6(21), p.1900808.
Hoque, Z. (2014) 20 years of studies on the balanced scorecard: Trends, accomplishments, gaps and opportunities for future research 46 pp33-59
Hu, M., Zhao, B., Ao, X., Ren, X., Cao, J., Wang, Q., Su, Y. and Pei, G., 2020. Performance assessment of a trifunctional system integrating solar PV, solar thermal, and radiative sky cooling. ; Applied Energy, 260, p.114167.
Kamble, S.S., Gunasekaran, A., Ghadge, A. and Raut, R., 2020. A performance measurement system for industry 4.0 enabled smart manufacturing system in SMMEs-A review and empirical investigation. ;International journal of production economics, ;229, p.107853.
Kaplan, R.S. and Norton, D.P. (2007) Using the balanced scorecard as a strategic management system July- August p150-161
Manser Payne, E.H., Dahl, A.J. and Peltier, J., 2021. Digital servitization value co-creation framework for AI services: a research agenda for digital transformation in financial service ecosystems. ;Journal of Research in Interactive Marketing, ;15(2), pp.200-222.
Nižeti?, S., Djilali, N., Papadopoulos, A. and Rodrigues, J.J., 2019. Smart technologies for the promotion of energy efficiency, utilization of sustainable resources, and waste management. ; Journal of cleaner production, 231, pp.565-591.
Shad, M.K., Lai, F.W., Fatt, C.L., Klemeš, J.J. and Bokhari, A., 2019. Integrating sustainability reporting into enterprise risk management and its relationship with business performance: A conceptual framework. ; Journal of Cleaner Production, 208, pp.415-425.
Termeer, C.J. and Dewulf, A., 2019. A small wins framework to overcome the evaluation paradox of governing wicked problems. ;Policy and Society, ;38(2), pp.298-314.
