Fitzgerald and Moon

From Wikireedia
Jump to: navigation, search

Fitzgerald et al (1993) and Fitzgerald & Moon (1996) consider performance measurement in service businesses. The figure below shows their building blocks for dimensions, standards and rewards for performance measurement systems.

They view the dimensions of performance in two sets, the results measured by financial performance and competitiveness and the determinants as measured by quality, flexibility, resource utilisation and innovation. Focus on the examination and improvement of the determinants should lead to improvement of the results. There are particular characteristics of service businesses which will affect performance and its measurement. These are:

* simultaneity (production and consumption of the service coinciding);
* perishability (the inability to store the service);
* heterogeneity (variability in the standard of performance of the provision of the service);
* intangibility (of what is provided to and valued by individual customers).

Value for money audits can be seen as being of particular relevance in not-for-profit organisations. The audit focuses on:

  • Economy,
  • Efficiency and
  • Effectiveness.

Firstly on the economy and efficiency with which the organisation's services are provided and then on the effectiveness of the organisation's performance in achieving its objectives. This may be complicated by the inter-relationship of objectives. For example, in Higher Education the main objectives may be seen as the provision of a quality educational environment in order that students obtain qualifications suited to their chosen careers and with skills relevant to the needs of industry and commerce. Subsidiary objectives which will help in the achievement of the main objectives may include:

  • a quality research environment for post-graduate students and staff and
  • a consultancy provision to generate income and to develop staff expertise,
  • fostering quality approaches to teaching and learning.

The measures of economy, efficiency and effectiveness may be in conflict with each other. Economy may be seen as spending frugally.

Fitzgerald and Moon 1996.gif


See Performance Pyramid

Personal tools
Namespaces

Variants
Actions
Navigation
Toolbox